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Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended | |||||||
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or | |||||||
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Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________ | ||||
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.) | |||||||||||||
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(Address of principal executive offices)
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(Zip Code) | |||||||||||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
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Title of each class
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Trading Symbol(s) | Name of each exchange on which registered | ||||||
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| Large accelerated filer | ☐ |
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| Non-accelerated filer | ☐ | Smaller reporting company |
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| Emerging growth company |
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| Description |
Page
Number
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| Description | Page | ||||||||||
| I. |
Distribution of Assets, Liabilities and Stockholder Equity; Interest Rates and Interest Differentials
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39-43 | |||||||||
| II. | Investment Portfolio | 49-51 | |||||||||
| III. | Loan Portfolio | 51-59, 103 | |||||||||
| IV. | Summary of Loan Loss Experience | 64-67, 115 | |||||||||
| V. | Deposits | 67-68, 120 | |||||||||
| VI. | Return on Equity and Assets | ||||||||||
| VII. | Short-Term Borrowings | 68, 121 | |||||||||
| For the period ending December 31, | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||
| Washington Trust Bancorp, Inc. | $100.00 | $146.88 | $143.62 | $132.49 | $155.96 | $137.56 | ||||||||||||||
| NASDAQ Bank Stocks | $100.00 | $137.97 | $145.50 | $121.96 | $151.69 | $140.31 | ||||||||||||||
| NASDAQ Stock Market (U.S.) | $100.00 | $108.97 | $141.36 | $137.39 | $187.87 | $272.51 | ||||||||||||||
| Selected Financial Data | (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||
| At or for the years ended December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Financial Results: | |||||||||||||||||||||||||||||
| Interest and dividend income | $169,936 | $197,663 | $176,407 | $149,586 | $133,470 | ||||||||||||||||||||||||
| Interest expense | 42,492 | 64,249 | 44,117 | 30,055 | 22,992 | ||||||||||||||||||||||||
| Net interest income | 127,444 | 133,414 | 132,290 | 119,531 | 110,478 | ||||||||||||||||||||||||
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Provision for credit losses
(1)
|
12,342 | 1,575 | 1,550 | 2,600 | 5,650 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 115,102 | 131,839 | 130,740 | 116,931 | 104,828 | ||||||||||||||||||||||||
| Noninterest income | 99,442 | 67,080 | 62,114 | 64,809 | 65,129 | ||||||||||||||||||||||||
| Noninterest expense | 125,384 | 110,740 | 106,162 | 104,100 | 101,103 | ||||||||||||||||||||||||
| Income before income taxes | 89,160 | 88,179 | 86,692 | 77,640 | 68,854 | ||||||||||||||||||||||||
| Income tax expense | 19,331 | 19,061 | 18,260 | 31,715 | 22,373 | ||||||||||||||||||||||||
| Net income | $69,829 | $69,118 | $68,432 | $45,925 | $46,481 | ||||||||||||||||||||||||
| Net income available to common shareholders | $69,678 | $68,979 | $68,288 | $45,817 | $46,384 | ||||||||||||||||||||||||
| Per Share Information ($): | |||||||||||||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||||||
| Basic | 4.03 | 3.98 | 3.95 | 2.66 | 2.72 | ||||||||||||||||||||||||
| Diluted | 4.00 | 3.96 | 3.93 | 2.64 | 2.70 | ||||||||||||||||||||||||
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Cash dividends declared
(2)
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2.05 | 2.00 | 1.76 | 1.54 | 1.46 | ||||||||||||||||||||||||
| Book value | 30.94 | 29.00 | 25.90 | 23.99 | 22.76 | ||||||||||||||||||||||||
| Market value - closing stock price | 44.80 | 53.79 | 47.53 | 53.25 | 56.05 | ||||||||||||||||||||||||
| Performance Ratios (%): | |||||||||||||||||||||||||||||
| Return on average assets | 1.22 | 1.34 | 1.46 | 1.04 | 1.16 | ||||||||||||||||||||||||
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Return on average equity
(3)
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13.51 | 14.34 | 16.20 | 11.23 | 11.94 | ||||||||||||||||||||||||
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Net interest margin
(4)
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2.40 | 2.77 | 3.01 | 2.93 | 3.02 | ||||||||||||||||||||||||
| Equity to assets | 9.35 | 9.51 | 8.94 | 9.12 | 8.92 | ||||||||||||||||||||||||
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Dividend payout ratio
(5)
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51.25 | 50.51 | 44.78 | 58.33 | 54.07 | ||||||||||||||||||||||||
| Asset Quality Ratios (%): | |||||||||||||||||||||||||||||
| Total past due loans to total loans | 0.30 | 0.40 | 0.37 | 0.59 | 0.76 | ||||||||||||||||||||||||
| Nonaccrual loans to total loans | 0.31 | 0.45 | 0.32 | 0.45 | 0.68 | ||||||||||||||||||||||||
| Nonperforming assets to total assets | 0.23 | 0.35 | 0.28 | 0.34 | 0.53 | ||||||||||||||||||||||||
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Allowance for credit losses on loans to nonaccrual loans
(1)
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334.21 | 155.18 | 231.25 | 174.14 | 117.89 | ||||||||||||||||||||||||
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Allowance for credit losses on loans to total loans
(1)
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1.05 | 0.69 | 0.74 | 0.79 | 0.80 | ||||||||||||||||||||||||
| Net charge-offs to average loans | 0.03 | 0.04 | 0.03 | 0.06 | 0.21 | ||||||||||||||||||||||||
| Capital Ratios (%): | |||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.51 | 12.94 | 12.56 | 12.45 | 12.26 | ||||||||||||||||||||||||
| Tier 1 risk-based capital ratio | 12.61 | 12.23 | 11.81 | 11.65 | 11.44 | ||||||||||||||||||||||||
| Common equity Tier 1 capital ratio | 12.06 | 11.65 | 11.20 | 10.99 | 10.75 | ||||||||||||||||||||||||
| Tier 1 leverage capital ratio | 8.95 | 9.04 | 8.89 | 8.79 | 8.67 | ||||||||||||||||||||||||
| Selected Financial Data | (Dollars in thousands) | ||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $202,268 | $138,455 | $93,475 | $82,923 | $107,797 | ||||||||||||||||||||||||
| Mortgage loans held for sale | 61,614 | 27,833 | 20,996 | 26,943 | 29,434 | ||||||||||||||||||||||||
| Total securities | 894,571 | 899,490 | 938,225 | 793,495 | 755,545 | ||||||||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 30,285 | 50,853 | 46,068 | 40,517 | 43,129 | ||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||
| Total loans | 4,195,990 | 3,892,999 | 3,680,360 | 3,374,071 | 3,234,371 | ||||||||||||||||||||||||
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Less: allowance for credit losses on loans
(1)
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44,106 | 27,014 | 27,072 | 26,488 | 26,004 | ||||||||||||||||||||||||
| Net loans | 4,151,884 | 3,865,985 | 3,653,288 | 3,347,583 | 3,208,367 | ||||||||||||||||||||||||
| Investment in bank-owned life insurance | 84,193 | 82,490 | 80,463 | 73,267 | 71,105 | ||||||||||||||||||||||||
| Goodwill and identifiable intangible assets | 70,214 | 71,127 | 72,071 | 73,049 | 74,234 | ||||||||||||||||||||||||
| Other assets | 218,140 | 156,426 | 106,180 | 92,073 | 91,504 | ||||||||||||||||||||||||
| Total assets | $5,713,169 | $5,292,659 | $5,010,766 | $4,529,850 | $4,381,115 | ||||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Noninterest-bearing deposits | $832,287 | $609,924 | $603,216 | $578,410 | $521,165 | ||||||||||||||||||||||||
| Interest-bearing deposits | 3,546,066 | 2,888,958 | 2,920,832 | 2,664,297 | 2,542,587 | ||||||||||||||||||||||||
| Total deposits | 4,378,353 | 3,498,882 | 3,524,048 | 3,242,707 | 3,063,752 | ||||||||||||||||||||||||
| FHLB advances | 593,859 | 1,141,464 | 950,722 | 791,356 | 848,930 | ||||||||||||||||||||||||
| Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||||||||||||||||
| Other liabilities | 184,081 | 126,140 | 65,131 | 59,822 | 54,948 | ||||||||||||||||||||||||
| Total shareholders’ equity | 534,195 | 503,492 | 448,184 | 413,284 | 390,804 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $5,713,169 | $5,292,659 | $5,010,766 | $4,529,850 | $4,381,115 | ||||||||||||||||||||||||
| Asset Quality: | |||||||||||||||||||||||||||||
| Nonaccrual loans | $13,197 | $17,408 | $11,707 | $15,211 | $22,058 | ||||||||||||||||||||||||
| Property acquired through foreclosure or repossession | — | 1,109 | 2,142 | 131 | 1,075 | ||||||||||||||||||||||||
| Total nonperforming assets | $13,197 | $18,517 | $13,849 | $15,342 | $23,133 | ||||||||||||||||||||||||
| Wealth Management Assets: | |||||||||||||||||||||||||||||
| Market value of assets under administration | $6,866,737 | $6,235,801 | $5,910,814 | $6,714,637 | $6,063,293 | ||||||||||||||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Net interest income | $127,444 | $133,414 | ($5,970) | (4 | %) | ||||||||||||
| Noninterest income | 99,442 | 67,080 | 32,362 | 48 | |||||||||||||
| Total revenues | 226,886 | 200,494 | 26,392 | 13 | |||||||||||||
| Provision for loan losses | 12,342 | 1,575 | 10,767 | 684 | |||||||||||||
| Noninterest expense | 125,384 | 110,740 | 14,644 | 13 | |||||||||||||
| Income before income taxes | 89,160 | 88,179 | 981 | 1 | |||||||||||||
| Income tax expense | 19,331 | 19,061 | 270 | 1 | |||||||||||||
| Net income | $69,829 | $69,118 | $711 | 1 | % | ||||||||||||
| Years Ended December 31, | 2020 | 2019 | ||||||
| Diluted earnings per common share | $4.00 | $3.96 | ||||||
| Return on average assets (net income divided by average assets) | 1.22 | % | 1.34 | % | ||||
|
Return on average equity (net income available for common shareholders divided by average equity)
|
13.51 | % | 14.34 | % | ||||
| Net interest income as a percentage of total revenues | 56 | % | 67 | % | ||||
| Noninterest income as a percentage of total revenues | 44 | % | 33 | % | ||||
| Years ended December 31, | 2020 | 2019 | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash, federal funds sold and short-term investments | $160,427 | $459 | 0.29 | % | $85,447 | $1,667 | 1.95 | % | |||||||||||||||||||||||||||
| Mortgage loans held for sale | 54,237 | 1,762 | 3.25 | 30,928 | 1,237 | 4.00 | |||||||||||||||||||||||||||||
| Taxable debt securities | 902,278 | 20,050 | 2.22 | 947,875 | 26,367 | 2.78 | |||||||||||||||||||||||||||||
| Nontaxable debt securities | — | — | — | 450 | 23 | 5.11 | |||||||||||||||||||||||||||||
|
Total securities
|
902,278 | 20,050 | 2.22 | 948,325 | 26,390 | 2.78 | |||||||||||||||||||||||||||||
| FHLB stock | 45,235 | 2,240 | 4.95 | 47,761 | 2,855 | 5.98 | |||||||||||||||||||||||||||||
| Commercial real estate | 1,632,460 | 52,231 | 3.20 | 1,481,116 | 68,193 | 4.60 | |||||||||||||||||||||||||||||
| Commercial & industrial | 767,176 | 27,410 | 3.57 | 596,451 | 28,545 | 4.79 | |||||||||||||||||||||||||||||
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Total commercial
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2,399,636 | 79,641 | 3.32 | 2,077,567 | 96,738 | 4.66 | |||||||||||||||||||||||||||||
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Residential real estate
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1,488,343 | 55,866 | 3.75 | 1,368,824 | 54,932 | 4.01 | |||||||||||||||||||||||||||||
| Home equity | 277,296 | 10,032 | 3.62 | 286,767 | 14,011 | 4.89 | |||||||||||||||||||||||||||||
| Other | 18,929 | 941 | 4.97 | 23,153 | 1,137 | 4.91 | |||||||||||||||||||||||||||||
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Total consumer
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296,225 | 10,973 | 3.70 | 309,920 | 15,148 | 4.89 | |||||||||||||||||||||||||||||
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Total loans
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4,184,204 | 146,480 | 3.50 | 3,756,311 | 166,818 | 4.44 | |||||||||||||||||||||||||||||
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Total interest-earning assets
|
5,346,381 | 170,991 | 3.20 | 4,868,772 | 198,967 | 4.09 | |||||||||||||||||||||||||||||
| Noninterest-earning assets | 358,569 | 300,549 | |||||||||||||||||||||||||||||||||
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Total assets
|
$5,704,950 | $5,169,321 | |||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||||||||||||||
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Interest-bearing demand deposits
|
$159,366 | $806 | 0.51 | % | $144,836 | $2,537 | 1.75 | % | |||||||||||||||||||||||||||
| NOW accounts | 593,105 | 368 | 0.06 | 469,540 | 310 | 0.07 | |||||||||||||||||||||||||||||
| Money market accounts | 839,915 | 5,402 | 0.64 | 693,921 | 7,713 | 1.11 | |||||||||||||||||||||||||||||
| Savings accounts | 415,741 | 265 | 0.06 | 365,927 | 272 | 0.07 | |||||||||||||||||||||||||||||
| Time deposits (in-market) | 742,236 | 13,138 | 1.77 | 794,124 | 16,056 | 2.02 | |||||||||||||||||||||||||||||
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Total interest-bearing in-market deposits
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2,750,363 | 19,979 | 0.73 | 2,468,348 | 26,888 | 1.09 | |||||||||||||||||||||||||||||
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Wholesale brokered time deposits
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501,306 | 5,833 | 1.16 | 461,862 | 10,213 | 2.21 | |||||||||||||||||||||||||||||
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Total interest-bearing deposits
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3,251,669 | 25,812 | 0.79 | 2,930,210 | 37,101 | 1.27 | |||||||||||||||||||||||||||||
| FHLB advances | 920,704 | 15,806 | 1.72 | 1,015,914 | 26,168 | 2.58 | |||||||||||||||||||||||||||||
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Junior subordinated debentures
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22,681 | 641 | 2.83 | 22,681 | 980 | 4.32 | |||||||||||||||||||||||||||||
| PPPLF borrowings | 66,492 | 233 | 0.35 | — | — | — | |||||||||||||||||||||||||||||
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Total interest-bearing liabilities
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4,261,546 | 42,492 | 1.00 | 3,968,805 | 64,249 | 1.62 | |||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 759,841 | 615,049 | |||||||||||||||||||||||||||||||||
| Other liabilities | 167,861 | 104,463 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 515,702 | 481,004 | |||||||||||||||||||||||||||||||||
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Total liabilities and shareholders’ equity
|
$5,704,950 | $5,169,321 | |||||||||||||||||||||||||||||||||
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Net interest income (FTE)
|
$128,499 | $134,718 | |||||||||||||||||||||||||||||||||
| Interest rate spread | 2.20 | % | 2.47 | % | |||||||||||||||||||||||||||||||
| Net interest margin | 2.40 | % | 2.77 | % | |||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||
| Years ended December 31, | 2020 | 2019 | ||||||
| Commercial loans | $1,055 | $1,299 | ||||||
| Nontaxable debt securities | — | 5 | ||||||
| Total | $1,055 | $1,304 | ||||||
| (Dollars in thousands) | Changes Due To | ||||||||||||||||
| Years Ended December 31, 2020 vs. 2019 | Volume | Rate | Net Change | ||||||||||||||
| Interest on interest-earning assets: | |||||||||||||||||
| Cash, federal funds sold and short-term investments | $827 | ($2,035) | ($1,208) | ||||||||||||||
| Mortgage loans held for sale | 792 | (267) | 525 | ||||||||||||||
| Taxable debt securities | (1,218) | (5,099) | (6,317) | ||||||||||||||
| Nontaxable debt securities | (11) | (12) | (23) | ||||||||||||||
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Total securities
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(1,229) | (5,111) | (6,340) | ||||||||||||||
| FHLB stock | (144) | (471) | (615) | ||||||||||||||
| Commercial real estate | 6,412 | (22,374) | (15,962) | ||||||||||||||
| Commercial & industrial | 7,100 | (8,235) | (1,135) | ||||||||||||||
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Total commercial
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13,512 | (30,609) | (17,097) | ||||||||||||||
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Residential real estate
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4,621 | (3,687) | 934 | ||||||||||||||
| Home equity | (449) | (3,530) | (3,979) | ||||||||||||||
| Other | (210) | 14 | (196) | ||||||||||||||
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Total consumer
|
(659) | (3,516) | (4,175) | ||||||||||||||
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Total loans
|
17,474 | (37,812) | (20,338) | ||||||||||||||
|
Total interest income
|
17,720 | (45,696) | (27,976) | ||||||||||||||
| Interest on interest-bearing liabilities: | |||||||||||||||||
| Interest-bearing demand deposits | 231 | (1,962) | (1,731) | ||||||||||||||
| NOW accounts | 98 | (40) | 58 | ||||||||||||||
| Money market accounts | 1,398 | (3,709) | (2,311) | ||||||||||||||
| Savings accounts | 32 | (39) | (7) | ||||||||||||||
| Time deposits (in-market) | (1,008) | (1,910) | (2,918) | ||||||||||||||
|
Total interest-bearing in-market deposits
|
751 | (7,660) | (6,909) | ||||||||||||||
| Wholesale brokered time deposits | 810 | (5,190) | (4,380) | ||||||||||||||
|
Total interest-bearing deposits
|
1,561 | (12,850) | (11,289) | ||||||||||||||
| FHLB advances | (2,274) | (8,088) | (10,362) | ||||||||||||||
| Junior subordinated debentures | — | (339) | (339) | ||||||||||||||
| PPPLF borrowings | 233 | — | 233 | ||||||||||||||
|
Total interest expense
|
(480) | (21,277) | (21,757) | ||||||||||||||
|
Net interest income (FTE)
|
$18,200 | ($24,419) | ($6,219) | ||||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
|
Noninterest income
:
|
|||||||||||||||||
| Wealth management revenues | $35,454 | $36,848 | ($1,394) | (4 | %) | ||||||||||||
| Mortgage banking revenues | 47,377 | 14,795 | 32,582 | 220 | |||||||||||||
| Card interchange fees | 4,287 | 4,214 | 73 | 2 | |||||||||||||
| Service charges on deposit accounts | 2,742 | 3,684 | (942) | (26) | |||||||||||||
| Loan related derivative income | 3,991 | 3,993 | (2) | — | |||||||||||||
| Income from bank-owned life insurance | 2,491 | 2,354 | 137 | 6 | |||||||||||||
| Net realized losses on securities | — | (53) | 53 | 100 | |||||||||||||
| Other income | 3,100 | 1,245 | 1,855 | 149 | |||||||||||||
| Total noninterest income | $99,442 | $67,080 | $32,362 | 48 | % | ||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Wealth management revenues: | |||||||||||||||||
| Asset-based revenues | $34,363 | $35,806 | ($1,443) | (4 | %) | ||||||||||||
| Transaction-based revenues | 1,091 | 1,042 | 49 | 5 | |||||||||||||
| Total wealth management revenues | $35,454 | $36,848 | ($1,394) | (4 | %) | ||||||||||||
| (Dollars in thousands) | 2020 | 2019 | ||||||
| Wealth management AUA: | ||||||||
| Balance at the beginning of period | $6,235,801 | $5,910,814 | ||||||
| Net investment appreciation & income | 774,265 | 1,119,826 | ||||||
| Net client asset outflows | (143,329) | (836,722) | ||||||
|
Other
(1)
|
— | 41,883 | ||||||
| Balance at the end of period | $6,866,737 | $6,235,801 | ||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Mortgage banking revenues: | |||||||||||||||||
|
Realized gains on loan sales, net
(1)
|
$42,008 | $13,978 | $28,030 | 201 | % | ||||||||||||
|
Unrealized gains, net
(2)
|
5,998 | 354 | 5,644 | 1,594 | |||||||||||||
|
Loan servicing fee income, net
(3)
|
(629) | 463 | (1,092) | (236) | |||||||||||||
| Total mortgage banking revenues | $47,377 | $14,795 | $32,582 | 220 | % | ||||||||||||
|
Loans sold to the secondary market
(4)
|
$1,139,761 | $591,172 | $548,589 | 93 | % | ||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Noninterest expense: | |||||||||||||||||
| Salaries and employee benefits | $82,899 | $72,761 | $10,138 | 14 | % | ||||||||||||
| Outsourced services | 11,894 | 10,598 | 1,296 | 12 | |||||||||||||
| Net occupancy | 8,023 | 7,821 | 202 | 3 | |||||||||||||
| Equipment | 3,831 | 4,081 | (250) | (6) | |||||||||||||
| Legal, audit and professional fees | 3,747 | 2,535 | 1,212 | 48 | |||||||||||||
| FDIC deposit insurance costs | 1,818 | 618 | 1,200 | 194 | |||||||||||||
| Advertising and promotion | 1,469 | 1,534 | (65) | (4) | |||||||||||||
| Amortization of intangibles | 914 | 943 | (29) | (3) | |||||||||||||
| Debt prepayment penalties | 1,413 | — | 1,413 | — | |||||||||||||
| Other | 9,376 | 9,849 | (473) | (5) | |||||||||||||
| Total noninterest expense | $125,384 | $110,740 | $14,644 | 13 | % | ||||||||||||
| (Dollars in thousands) | ||||||||
| Years ended December 31, | 2020 | 2019 | ||||||
| Income tax expense | $19,331 | $19,061 | ||||||
| Effective income tax rate | 21.7 | % | 21.6 | % | ||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Net interest income | $128,600 | $112,414 | $16,186 | 14 | % | ||||||||||||
| Provision for loan losses | 12,342 | 1,575 | 10,767 | 684 | |||||||||||||
| Net interest income after provision for credit losses | 116,258 | 110,839 | 5,419 | 5 | |||||||||||||
| Noninterest income | 61,463 | 27,857 | 33,606 | 121 | |||||||||||||
| Noninterest expense | 79,669 | 69,147 | 10,522 | 15 | |||||||||||||
| Income before income taxes | 98,052 | 69,549 | 28,503 | 41 | |||||||||||||
| Income tax expense | 21,216 | 15,189 | 6,027 | 40 | |||||||||||||
| Net income | $76,836 | $54,360 | $22,476 | 41 | % | ||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Net interest expense | ($141) | ($438) | $297 | (68 | %) | ||||||||||||
| Noninterest income | 35,454 | 36,856 | (1,402) | (4) | |||||||||||||
| Noninterest expense | 28,779 | 27,502 | 1,277 | 5 | |||||||||||||
| Income before income taxes | 6,534 | 8,916 | (2,382) | (27) | |||||||||||||
| Income tax expense | 1,746 | 2,308 | (562) | (24) | |||||||||||||
| Net income | $4,788 | $6,608 | ($1,820) | (28 | %) | ||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| Years Ended December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Net interest (expense) income | ($1,015) | $21,438 | ($22,453) | (105 | %) | ||||||||||||
| Noninterest income | 2,525 | 2,367 | 158 | 7 | |||||||||||||
| Noninterest expense | 16,936 | 14,091 | 2,845 | 20 | |||||||||||||
| (Loss) income before income taxes | (15,426) | 9,714 | (25,140) | (259) | |||||||||||||
| Income tax (benefit) expense | (3,631) | 1,564 | (5,195) | (332) | |||||||||||||
| Net (loss) income | ($11,795) | $8,150 | ($19,945) | (245 | %) | ||||||||||||
| (Dollars in thousands) | Change | ||||||||||||||||
| December 31, | 2020 | 2019 | $ | % | |||||||||||||
| Cash and due from banks | $194,143 | $132,193 | $61,950 | 47 | % | ||||||||||||
| Total securities | 894,571 | 899,490 | (4,919) | (1) | |||||||||||||
| Total loans | 4,195,990 | 3,892,999 | 302,991 | 8 | |||||||||||||
| Allowance for credit losses on loans | 44,106 | 27,014 | 17,092 | 63 | |||||||||||||
| Total assets | 5,713,169 | 5,292,659 | 420,510 | 8 | |||||||||||||
| Total deposits | 4,378,353 | 3,498,882 | 879,471 | 25 | |||||||||||||
| FHLB advances | 593,859 | 1,141,464 | (547,605) | (48) | |||||||||||||
| Total shareholders’ equity | 534,195 | 503,492 | 30,703 | 6 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
| Available for Sale Debt Securities: | |||||||||||||||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
$131,669 | 15 | % | $157,648 | 18 | % | $242,683 | 26 | % | ||||||||||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
740,305 | 83 | 719,080 | 80 | 660,793 | 72 | |||||||||||||||||||||||||||||
| Obligations of states and political subdivisions | — | — | — | — | 937 | — | |||||||||||||||||||||||||||||
| Individual name issuer trust preferred debt securities | 12,669 | 1 | 12,579 | 1 | 11,772 | 1 | |||||||||||||||||||||||||||||
| Corporate bonds | 9,928 | 1 | 10,183 | 1 | 11,625 | 1 | |||||||||||||||||||||||||||||
| Total available for sale debt securities | $894,571 | 100 | % | $899,490 | 100 | % | $927,810 | 100 | % | ||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||||||||||
| Held to Maturity Debt Securities: | |||||||||||||||||||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
$— | — | % | $— | — | % | $10,415 | 100 | % | ||||||||||||||||||||||||||
| Total held to maturity debt securities | $— | — | % | $— | — | % | $10,415 | 100 | % | ||||||||||||||||||||||||||
| (Dollars in thousands) | December 31, 2020 | ||||||||||||||||||||||||||||
| Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Totals | |||||||||||||||||||||||||
| Available for Sale Debt Securities: | |||||||||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises:
|
|||||||||||||||||||||||||||||
|
Amortized cost
|
$806 | $41,896 | $88,484 | $— | $131,186 | ||||||||||||||||||||||||
|
Weighted average yield
|
2.15 | % | 2.58 | % | 1.30 | % | — | % | 1.72 | % | |||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises:
|
|||||||||||||||||||||||||||||
|
Amortized cost
|
128,165 | 308,963 | 172,044 | 116,718 | 725,890 | ||||||||||||||||||||||||
|
Weighted average yield
|
2.49 | 2.34 | 2.13 | 1.71 | 2.22 | ||||||||||||||||||||||||
|
Individual name issuer trust preferred debt securities:
|
|||||||||||||||||||||||||||||
|
Amortized cost
|
— | — | 13,341 | — | 13,341 | ||||||||||||||||||||||||
|
Weighted average yield
|
— | — | 0.82 | — | 0.82 | ||||||||||||||||||||||||
| Corporate bonds: | |||||||||||||||||||||||||||||
|
Amortized cost
|
— | — | 3,279 | 7,874 | 11,153 | ||||||||||||||||||||||||
|
Weighted average yield
|
— | — | 0.84 | 1.34 | 1.19 | ||||||||||||||||||||||||
| Total available for sale debt securities: | |||||||||||||||||||||||||||||
|
Amortized cost
|
$128,971 | $350,859 | $277,148 | $124,592 | $881,570 | ||||||||||||||||||||||||
|
Weighted average yield
|
2.49 | % | 2.37 | % | 1.79 | % | 1.69 | % | 2.11 | % | |||||||||||||||||||
| Fair value | $131,519 | $357,148 | $279,859 | $126,045 | $894,571 | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
|
Commercial real estate
(1)
|
$1,633,024 | 39 | % | $1,547,572 | 40 | % | $1,392,408 | 38 | % | $1,210,495 | 36 | % | $1,195,557 | 37 | % | |||||||||||||||||||||||||||||
|
Commercial & industrial
(2)
|
817,408 | 19 | 585,289 | 15 | 620,704 | 17 | 612,334 | 18 | 576,109 | 18 | ||||||||||||||||||||||||||||||||||
| Total commercial | 2,450,432 | 58 | 2,132,861 | 55 | 2,013,112 | 55 | 1,822,829 | 54 | 1,771,666 | 55 | ||||||||||||||||||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||||||||||||||||||||||
|
Residential real estate
(3)
|
1,467,312 | 35 | 1,449,090 | 37 | 1,360,387 | 37 | 1,227,248 | 36 | 1,122,748 | 35 | ||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
|
Home equity
|
259,185 | 6 | 290,874 | 7 | 280,626 | 8 | 292,467 | 9 | 301,472 | 9 | ||||||||||||||||||||||||||||||||||
|
Other
(4)
|
19,061 | 1 | 20,174 | 1 | 26,235 | — | 31,527 | 1 | 38,485 | 1 | ||||||||||||||||||||||||||||||||||
| Total consumer | 278,246 | 7 | 311,048 | 8 | 306,861 | 8 | 323,994 | 10 | 339,957 | 10 | ||||||||||||||||||||||||||||||||||
| Total loans | $4,195,990 | 100 | % | $3,892,999 | 100 | % | $3,680,360 | 100 | % | $3,374,071 | 100 | % | $3,234,371 | 100 | % | |||||||||||||||||||||||||||||
| (Dollars in thousands) | Commercial | Consumer | ||||||||||||||||||||||||
|
CRE
(1)
|
C&I | Total Commercial |
Residential Real Estate
(2)
|
Home Equity | Other | Total Consumer | Total | |||||||||||||||||||
| Amounts due in: | ||||||||||||||||||||||||||
| One year or less | $240,570 | $119,416 | $359,986 | $39,111 | $3,429 | $2,589 | $6,018 | $405,115 | ||||||||||||||||||
| After one year to five years | 773,807 | 456,192 | 1,229,999 | 170,929 | 11,879 | 9,596 | 21,475 | 1,422,403 | ||||||||||||||||||
| After five years | 618,647 | 241,800 | 860,447 | 1,257,272 | 243,877 | 6,876 | 250,753 | 2,368,472 | ||||||||||||||||||
| Total | $1,633,024 | $817,408 | $2,450,432 | $1,467,312 | $259,185 | $19,061 | $278,246 | $4,195,990 | ||||||||||||||||||
|
Interest rate terms on amounts due after one year:
|
||||||||||||||||||||||||||
|
Predetermined rates
|
$136,034 | $372,118 | $508,152 | $379,803 | $26,234 | $14,709 | $40,943 | $928,898 | ||||||||||||||||||
|
Variable or adjustable rates
|
1,256,420 | 325,874 | 1,582,294 | 1,048,398 | 229,522 | 1,763 | 231,285 | 2,861,977 | ||||||||||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||
| Outstanding Balance | % of Total | Outstanding Balance | % of Total | ||||||||||||||
| Connecticut | $649,919 | 40 | % | $616,484 | 40 | % | |||||||||||
| Massachusetts | 468,947 | 29 | 458,029 | 30 | |||||||||||||
| Rhode Island | 431,133 | 26 | 394,929 | 25 | |||||||||||||
| Subtotal | 1,549,999 | 95 | 1,469,442 | 95 | |||||||||||||
| All other states | 83,025 | 5 | 78,130 | 5 | |||||||||||||
| Total | $1,633,024 | 100 | % | $1,547,572 | 100 | % | |||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Count | Outstanding Balance | % of Total | Count | Outstanding Balance | % of Total | ||||||||||||||||||
| CRE Portfolio Segmentation: | |||||||||||||||||||||||
| Multi-family dwelling | 137 | $524,874 | 32 | % | 123 | $430,502 | 28 | % | |||||||||||||||
| Retail | 136 | 339,569 | 21 | 110 | 314,661 | 20 | |||||||||||||||||
| Office | 73 | 290,756 | 18 | 78 | 294,910 | 19 | |||||||||||||||||
| Hospitality | 40 | 157,720 | 10 | 32 | 128,867 | 8 | |||||||||||||||||
| Healthcare | 15 | 109,321 | 7 | 16 | 110,409 | 7 | |||||||||||||||||
| Industrial and warehouse | 28 | 97,055 | 6 | 25 | 82,432 | 5 | |||||||||||||||||
| Commercial mixed use | 22 | 42,405 | 2 | 48 | 73,895 | 5 | |||||||||||||||||
| Other | 38 | 71,324 | 4 | 70 | 111,896 | 8 | |||||||||||||||||
|
Total CRE loans
|
489 | $1,633,024 | 100 | % | 502 | $1,547,572 | 100 | % | |||||||||||||||
|
Average CRE loan size
|
$3,340 | $3,083 | |||||||||||||||||||||
|
Largest individual CRE loan outstanding
|
$32,200 | $25,962 | |||||||||||||||||||||
| (Dollars in thousands) | February 19, 2021 | December 31, 2020 | |||||||||||||||||||||
| Count | Balance |
% of Outstanding Balance
(1)
|
Count | Balance |
% of Outstanding Balance
(1)
|
||||||||||||||||||
| CRE Deferments by Segment: | |||||||||||||||||||||||
| Hospitality | 14 | $61,054 | 39 | % | 20 | $83,073 | 53 | % | |||||||||||||||
| Retail | 3 | 20,600 | 6 | 5 | 39,781 | 12 | |||||||||||||||||
| Healthcare | 1 | 18,307 | 17 | 2 | 22,305 | 20 | |||||||||||||||||
| Office | 1 | 1,833 | 1 | 2 | 2,457 | 1 | |||||||||||||||||
| Commercial mixed use | — | — | — | 1 | 637 | 2 | |||||||||||||||||
| Multi-family dwelling | — | — | — | 1 | 364 | — | |||||||||||||||||
| Other | 7 | 27,786 | 39 | 7 | 27,785 | 39 | |||||||||||||||||
|
Total CRE deferments
|
26 | $129,580 | 8 | % | 38 | $176,402 | 11 | % | |||||||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Count | Outstanding Balance | % of Total | Count | Outstanding Balance | % of Total | ||||||||||||||||||
| C&I Portfolio Segmentation: | |||||||||||||||||||||||
| Healthcare and social assistance | 253 | $200,217 | 24 | % | 86 | $138,857 | 24 | % | |||||||||||||||
| Manufacturing | 146 | 88,802 | 11 | 65 | 53,561 | 9 | |||||||||||||||||
| Owner occupied and other real estate | 268 | 74,309 | 9 | 157 | 46,033 | 8 | |||||||||||||||||
| Educational services | 53 | 64,969 | 8 | 22 | 56,556 | 10 | |||||||||||||||||
| Retail | 192 | 63,895 | 8 | 75 | 43,386 | 7 | |||||||||||||||||
| Accommodation and food services | 271 | 47,020 | 6 | 64 | 16,562 | 3 | |||||||||||||||||
|
Professional, scientific and technical
|
265 | 39,295 | 5 | 66 | 37,599 | 6 | |||||||||||||||||
|
Entertainment and recreation
|
91 | 29,415 | 4 | 35 | 30,807 | 5 | |||||||||||||||||
|
Information
|
32 | 28,394 | 3 | 11 | 22,162 | 4 | |||||||||||||||||
|
Finance and insurance
|
106 | 26,244 | 3 | 57 | 28,501 | 5 | |||||||||||||||||
|
Transportation and warehousing
|
42 | 24,061 | 3 | 23 | 20,960 | 4 | |||||||||||||||||
|
Public administration
|
26 | 23,319 | 3 | 23 | 25,107 | 4 | |||||||||||||||||
|
Other
|
772 | 107,468 | 13 | 225 | 65,198 | 11 | |||||||||||||||||
|
Total C&I loans
|
2,517 | $817,408 | 100 | % | 909 | $585,289 | 100 | % | |||||||||||||||
|
Average C&I loan size
|
$325 | $644 | |||||||||||||||||||||
|
Largest individual C&I loan outstanding
|
$19,500 | $19,001 | |||||||||||||||||||||
| (Dollars in thousands) | December 31, 2020 | ||||||||||
| Count | Outstanding Balance | % of Total | |||||||||
| PPP Loans by Segment: | |||||||||||
| Healthcare and social assistance | 173 | $47,354 | 24 | % | |||||||
| Accommodation and food services | 209 | 23,678 | 12 | ||||||||
| Manufacturing | 89 | 23,321 | 12 | ||||||||
|
Professional, scientific and technical
|
220 | 20,031 | 10 | ||||||||
| Retail | 134 | 12,107 | 6 | ||||||||
| Educational services | 32 | 9,681 | 5 | ||||||||
| Owner occupied and other real estate | 115 | 9,241 | 5 | ||||||||
|
Entertainment and recreation
|
61 | 3,386 | 2 | ||||||||
|
Information
|
20 | 2,478 | 1 | ||||||||
|
Finance and insurance
|
55 | 2,000 | 1 | ||||||||
|
Transportation and warehousing
|
21 | 2,059 | 1 | ||||||||
|
Public administration
|
4 | 483 | — | ||||||||
|
Other
|
573 | 43,961 | 21 | ||||||||
|
Total PPP loans (included in the C&I loan portfolio)
|
1,706 | $199,780 | 100 | % | |||||||
| (Dollars in thousands) | February 19, 2021 | December 31, 2020 | |||||||||||||||||||||
| Count | Balance |
% of Outstanding Balance, excl PPP loans
(1)
|
Count | Balance |
% of Outstanding Balance, excl PPP loans
(1)
|
||||||||||||||||||
| C&I Deferments by Segment: | |||||||||||||||||||||||
| Healthcare and social assistance | 5 | $19,774 | 13 | % | 5 | $19,620 | 13 | % | |||||||||||||||
|
Accommodation and food services
|
1 | 2,836 | 12 | 2 | 2,889 | 12 | |||||||||||||||||
|
Transportation and warehousing
|
4 | 1,120 | 5 | 4 | 1,120 | 5 | |||||||||||||||||
| Manufacturing | 2 | 947 | 1 | 2 | 947 | 1 | |||||||||||||||||
|
Entertainment and recreation
|
3 | 554 | 2 | 3 | 560 | 2 | |||||||||||||||||
| Owner occupied and other real estate | 1 | 326 | 1 | 1 | 326 | 1 | |||||||||||||||||
|
Other
|
4 | 7,623 | 12 | 4 | 7,673 | 12 | |||||||||||||||||
|
Total C&I deferments
|
20 | $33,180 | 5 | % | 21 | $33,135 | 5 | % | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Years ended December 31, | 2020 | 2019 | |||||||||||||||
| Amount | % of Total | Amount | % of Total | ||||||||||||||
|
Originations for retention in portfolio
(1)
|
$502,120 | 30 | % | $347,390 | 37 | % | |||||||||||
|
Originations for sale to the secondary market
(2)
|
1,171,906 | 70 | 598,103 | 63 | |||||||||||||
| Total | $1,674,026 | 100 | % | $945,493 | 100 | % | |||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Years ended December 31, | 2020 | 2019 | |||||||||||||||
| Amount | % of Total | Amount | % of Total | ||||||||||||||
| Loans sold with servicing rights retained | $849,467 | 75 | % | $96,160 | 16 | % | |||||||||||
|
Loans sold with servicing rights released
(1)
|
290,294 | 25 | 495,012 | 84 | |||||||||||||
| Total | $1,139,761 | 100 | % | $591,172 | 100 | % | |||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
|
Massachusetts
|
$994,800 | 68 | % | $932,726 | 64 | % | |||||||||||||||||
| Rhode Island | 331,713 | 23 | 356,392 | 25 | |||||||||||||||||||
|
Connecticut
|
122,102 | 8 | 140,574 | 10 | |||||||||||||||||||
| Subtotal | 1,448,615 | 99 | 1,429,692 | 99 | |||||||||||||||||||
| All other states | 18,697 | 1 | 19,398 | 1 | |||||||||||||||||||
|
Total
(1)
|
$1,467,312 | 100 | % | $1,449,090 | 100 | % | |||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
$— | $603 | $925 | $4,954 | $7,811 | ||||||||||||
|
Commercial & industrial
|
— | 657 | — | 283 | 1,337 | ||||||||||||
|
Total commercial
|
— | 1,260 | 925 | 5,237 | 9,148 | ||||||||||||
| Residential Real Estate: | |||||||||||||||||
|
Residential real estate
|
11,981 | 14,297 | 9,346 | 9,414 | 11,736 | ||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
1,128 | 1,763 | 1,436 | 544 | 1,058 | ||||||||||||
|
Other
|
88 | 88 | — | 16 | 116 | ||||||||||||
|
Total consumer
|
1,216 | 1,851 | 1,436 | 560 | 1,174 | ||||||||||||
| Total nonaccrual loans | 13,197 | 17,408 | 11,707 | 15,211 | 22,058 | ||||||||||||
|
Property acquired through foreclosure or repossession, net
|
— | 1,109 | 2,142 | 131 | 1,075 | ||||||||||||
| Total nonperforming assets | $13,197 | $18,517 | $13,849 | $15,342 | $23,133 | ||||||||||||
| Nonperforming assets to total assets | 0.23% | 0.35% | 0.28% | 0.34% | 0.53% | ||||||||||||
| Nonperforming loans to total loans | 0.31% | 0.45% | 0.32% | 0.45% | 0.68% | ||||||||||||
| Total past due loans to total loans | 0.30% | 0.40% | 0.37% | 0.59% | 0.76% | ||||||||||||
| Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||
| (Dollars in thousands) | |||||||||||
| Years ended December 31, | 2020 | 2019 | |||||||||
| Balance at beginning of period | $17,408 | $11,707 | |||||||||
| Additions to nonaccrual status | 3,644 | 11,982 | |||||||||
| Loans returned to accruing status | (3,282) | (1,570) | |||||||||
| Loans charged-off | (1,317) | (2,020) | |||||||||
| Loans transferred to other real estate owned | (313) | (2,000) | |||||||||
| Payments, payoffs and other changes | (2,943) | (691) | |||||||||
| Balance at end of period | $13,197 | $17,408 | |||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
| Days Past Due | Days Past Due | ||||||||||||||||||||||||||||
| Over 90 | Under 90 | Total |
%
(1)
|
Over 90 | Under 90 | Total |
%
(1)
|
||||||||||||||||||||||
|
Commercial:
|
|||||||||||||||||||||||||||||
|
Commercial real estate
|
$— | $— | $— | — | % | $603 | $— | $603 | 0.04 | % | |||||||||||||||||||
|
Commercial & industrial
|
— | — | — | — | — | 657 | 657 | 0.11 | |||||||||||||||||||||
|
Total commercial
|
— | — | — | — | 603 | 657 | 1,260 | 0.06 | |||||||||||||||||||||
|
Residential Real Estate:
|
|||||||||||||||||||||||||||||
|
Residential real estate
|
5,172 | 6,809 | 11,981 | 0.82 | 4,700 | 9,597 | 14,297 | 0.99 | |||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Home equity | 644 | 484 | 1,128 | 0.44 | 996 | 767 | 1,763 | 0.61 | |||||||||||||||||||||
| Other | 88 | — | 88 | 0.46 | 88 | — | 88 | 0.44 | |||||||||||||||||||||
| Total consumer | 732 | 484 | 1,216 | 0.44 | 1,084 | 767 | 1,851 | 0.60 | |||||||||||||||||||||
| Total nonaccrual loans | $5,904 | $7,293 | $13,197 | 0.31 | % | $6,387 | $11,021 | $17,408 | 0.45 | % | |||||||||||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||
| Count | Amount | Count | Amount | ||||||||||||||
| Accruing TDRs | |||||||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
3 | $1,792 | — | $— | |||||||||||||
|
Commercial & industrial
|
5 | 6,814 | — | — | |||||||||||||
|
Total commercial
|
8 | 8,606 | — | — | |||||||||||||
| Residential Real Estate: | |||||||||||||||||
|
Residential real estate
|
8 | 3,932 | 1 | 358 | |||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
3 | 788 | — | — | |||||||||||||
|
Other
|
1 | 14 | 1 | 18 | |||||||||||||
|
Total consumer
|
4 | 802 | 1 | 18 | |||||||||||||
| Accruing TDRs | 20 | 13,340 | 2 | 376 | |||||||||||||
| Nonaccrual TDRs | |||||||||||||||||
| Residential Real Estate: | |||||||||||||||||
|
Residential real estate
|
5 | 2,273 | 3 | 492 | |||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
1 | 72 | — | — | |||||||||||||
|
Other
|
— | — | — | — | |||||||||||||
|
Total consumer
|
1 | 72 | — | — | |||||||||||||
| Nonaccrual TDRs | 6 | 2,345 | 3 | 492 | |||||||||||||
| Total TDRs | 26 | $15,685 | 5 | $868 | |||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| December 31, | 2020 | 2019 | |||||||||||||||||||||
| Amount |
%
(1)
|
Amount |
%
(1)
|
||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
|
Commercial real estate
|
$265 | 0.02 | % | $1,433 | 0.09 | % | |||||||||||||||||
|
Commercial & industrial
|
3 | — | 1 | — | |||||||||||||||||||
|
Total commercial
|
268 | 0.01 | 1,434 | 0.07 | |||||||||||||||||||
| Residential Real Estate: | |||||||||||||||||||||||
|
Residential real estate
|
10,339 | 0.70 | 11,429 | 0.79 | |||||||||||||||||||
| Consumer: | |||||||||||||||||||||||
|
Home equity
|
1,667 | 0.64 | 2,696 | 0.93 | |||||||||||||||||||
|
Other
|
118 | 0.62 | 130 | 0.64 | |||||||||||||||||||
|
Total consumer
|
1,785 | 0.64 | 2,826 | 0.91 | |||||||||||||||||||
| Total past due loans | $12,392 | 0.30 | % | $15,689 | 0.40 | % | |||||||||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||||||||
| Loans | Related Allowance | Allowance / Loans | Loans | Related Allowance | Allowance / Loans | ||||||||||||||||||
| Individually analyzed loans | $18,252 | $379 | 2.08 | % | $17,783 | $968 | 5.44 | % | |||||||||||||||
| Pooled (collectively evaluated) loans | 4,177,738 | 43,727 | 1.05 | 3,875,216 | 26,046 | 0.67 | |||||||||||||||||
| Total | $4,195,990 | $44,106 | 1.05 | % | $3,892,999 | $27,014 | 0.69 | % | |||||||||||||||
| (Dollars in thousands) | December 31, 2020 | December 31, 2019 | |||||||||||||||
| Allocated ACL | ACL to Loans | Allocated ACL | ACL to Loans | ||||||||||||||
| Commercial: | |||||||||||||||||
| Commercial real estate | $22,065 | 1.35 | % | $14,741 | 0.95 | % | |||||||||||
| Commercial & industrial | 12,228 | 1.50 | 3,921 | 0.67 | |||||||||||||
| Total commercial | 34,293 | 1.40 | 18,662 | 0.87 | |||||||||||||
| Residential Real Estate: | |||||||||||||||||
| Residential real estate | 8,042 | 0.55 | 6,615 | 0.46 | |||||||||||||
| Consumer: | |||||||||||||||||
| Home equity | 1,300 | 0.50 | 1,390 | 0.48 | |||||||||||||
| Other | 471 | 2.47 | 347 | 1.72 | |||||||||||||
| Total consumer | 1,771 | 0.64 | 1,737 | 0.56 | |||||||||||||
| Total allowance for credit losses on loans at end of period | $44,106 | 1.05 | % | $27,014 | 0.69 | % | |||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||
| Amount |
%
(1)
|
Amount |
%
(1)
|
Amount |
%
(1)
|
Amount |
%
(1)
|
Amount |
%
(1)
|
|||||||||||||||||||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $22,065 | 39 | % | $14,741 | 40 | % | $15,381 | 38 | % | $12,729 | 36 | % | $11,166 | 37 | % | |||||||||||||||||||||||||||||
| Commercial & industrial | 12,228 | 19 | 3,921 | 15 | 5,847 | 17 | 5,580 | 18 | 6,992 | 18 | ||||||||||||||||||||||||||||||||||
| Total commercial | 34,293 | 58 | 18,662 | 55 | 21,228 | 55 | 18,309 | 54 | 18,158 | 55 | ||||||||||||||||||||||||||||||||||
| Residential Real Estate: | ||||||||||||||||||||||||||||||||||||||||||||
| Residential real estate | 8,042 | 35 | 6,615 | 37 | 3,987 | 37 | 5,427 | 36 | 5,252 | 35 | ||||||||||||||||||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||||||||||||||||||||||
| Home Equity | 1,300 | 6 | 1,390 | 7 | 1,603 | 8 | 2,412 | 9 | 1,889 | 9 | ||||||||||||||||||||||||||||||||||
| Other | 471 | 1 | 347 | 1 | 254 | — | 340 | 1 | 705 | 1 | ||||||||||||||||||||||||||||||||||
| Total Consumer | 1,771 | 7 | 1,737 | 8 | 1,857 | 8 | 2,752 | 10 | 2,594 | 10 | ||||||||||||||||||||||||||||||||||
| Balance at end of period | $44,106 | 100 | % | $27,014 | 100 | % | $27,072 | 100 | % | $26,488 | 100 | % | $26,004 | 100 | % | |||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| December 31, | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||
| Balance at beginning of period | $27,014 | $27,072 | $26,488 | $26,004 | $27,069 | ||||||||||||
| Adoption of ASC 326 | 6,501 | — | — | — | — | ||||||||||||
| Charge-offs: | |||||||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
356 | 1,028 | 627 | 1,867 | 5,816 | ||||||||||||
|
Commercial & industrial
|
586 | 21 | 10 | 336 | 759 | ||||||||||||
|
Total commercial
|
942 | 1,049 | 637 | 2,203 | 6,575 | ||||||||||||
| Residential real estate: | |||||||||||||||||
|
Residential real estate
|
99 | 486 | 250 | 74 | 200 | ||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
224 | 390 | 193 | 79 | 147 | ||||||||||||
|
Other
|
52 | 95 | 107 | 106 | 90 | ||||||||||||
|
Total consumer
|
276 | 485 | 300 | 185 | 237 | ||||||||||||
| Total charge-offs | 1,317 | 2,020 | 1,187 | 2,462 | 7,012 | ||||||||||||
| Recoveries: | |||||||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
51 | 125 | 25 | 82 | 56 | ||||||||||||
|
Commercial & industrial
|
24 | 168 | 119 | 169 | 156 | ||||||||||||
|
Total commercial
|
75 | 293 | 144 | 251 | 212 | ||||||||||||
| Residential real estate: | |||||||||||||||||
|
Residential real estate
|
20 | — | 21 | 39 | 11 | ||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
52 | 72 | 29 | 33 | 37 | ||||||||||||
|
Other
|
25 | 22 | 27 | 23 | 37 | ||||||||||||
|
Total consumer
|
77 | 94 | 56 | 56 | 74 | ||||||||||||
| Total recoveries | 172 | 387 | 221 | 346 | 297 | ||||||||||||
| Net charge-offs | 1,145 | 1,633 | 966 | 2,116 | 6,715 | ||||||||||||
| Provision charged to earnings | 11,736 | 1,575 | 1,550 | 2,600 | 5,650 | ||||||||||||
| Balance at end of period | $44,106 | $27,014 | $27,072 | $26,488 | $26,004 | ||||||||||||
| Net charge-offs to average loans | 0.03 | % | 0.04 | % | 0.03 | % | 0.06 | % | 0.21 | % | |||||||
| (Dollars in thousands) | Change | |||||||||||||||||||
| December 31, | 2020 | 2019 | $ | % | ||||||||||||||||
| Noninterest-bearing demand deposits | $832,287 | $609,924 | $222,363 | 36 | % | |||||||||||||||
| Interest-bearing demand deposits | 174,290 | 159,938 | 14,352 | 9 | ||||||||||||||||
| NOW accounts | 698,706 | 520,295 | 178,411 | 34 | ||||||||||||||||
| Money market accounts | 910,167 | 765,899 | 144,268 | 19 | ||||||||||||||||
| Savings accounts | 466,507 | 373,503 | 93,004 | 25 | ||||||||||||||||
| Time deposits (in-market) | 704,855 | 784,481 | (79,626) | (10) | ||||||||||||||||
| Total in-market deposits | 3,786,812 | 3,214,040 | 572,772 | 18 | ||||||||||||||||
| Wholesale brokered time deposits | 591,541 | 284,842 | 306,699 | 108 | ||||||||||||||||
| Total deposits | $4,378,353 | $3,498,882 | $879,471 | 25 | % | |||||||||||||||
| (Dollars in thousands) | ||||||||
| December 31, | 2020 | 2019 | ||||||
| Additional Funding Capacity: | ||||||||
|
Federal Home Loan Bank of Boston
(1)
|
$969,735 | $534,990 | ||||||
|
Federal Reserve Bank of Boston
(2)
|
20,678 | 24,686 | ||||||
| Unencumbered investment securities | 594,998 | 461,850 | ||||||
| Total | $1,585,411 | $1,021,526 | ||||||
| (Dollars in thousands) | Payments Due by Period | ||||||||||||||||||||||||||||
| Total |
Less Than
1 Year
(1)
|
1-3 Years | 3-5 Years |
After
5 Years |
|||||||||||||||||||||||||
| Contractual Obligations: | |||||||||||||||||||||||||||||
|
FHLB advances
(2)
|
$593,859 | $517,222 | $1,669 | $38,651 | $36,317 | ||||||||||||||||||||||||
| Junior subordinated debentures | 22,681 | — | — | — | 22,681 | ||||||||||||||||||||||||
| Operating leases | 40,185 | 3,922 | 7,720 | 6,497 | 22,046 | ||||||||||||||||||||||||
| Third party application processing | 24,277 | 6,183 | 10,828 | 7,162 | 104 | ||||||||||||||||||||||||
| Total contractual obligations | $681,002 | $527,327 | $20,217 | $52,310 | $81,148 | ||||||||||||||||||||||||
| (Dollars in thousands) | Amount of Commitment Expiration – Per Period | ||||||||||||||||||||||||||||
| Total |
Less Than
1 Year |
1-3 Years | 3-5 Years |
After
5 Years |
|||||||||||||||||||||||||
| Other Commitments: | |||||||||||||||||||||||||||||
| Commitments to extend credit | $862,315 | $297,403 | $32,364 | $103,085 | $429,463 | ||||||||||||||||||||||||
| Standby letters of credit | 11,709 | 11,317 | 392 | — | — | ||||||||||||||||||||||||
|
Mortgage loan commitments
(1)
:
|
|||||||||||||||||||||||||||||
|
Interest rate lock commitments
|
167,671 | 167,671 | — | — | — | ||||||||||||||||||||||||
|
Forward sale commitments
|
279,653 | 279,653 | — | — | — | ||||||||||||||||||||||||
|
Loan related derivative contracts
(1)
:
|
|||||||||||||||||||||||||||||
|
Interest rate swaps with customers
|
991,002 | 10,583 | 194,283 | 220,199 | 565,937 | ||||||||||||||||||||||||
|
Mirror swaps with counterparties
|
991,002 | 10,583 | 194,283 | 220,199 | 565,937 | ||||||||||||||||||||||||
|
Risk participation-in agreements
|
92,717 | — | 9,370 | 20,130 | 63,217 | ||||||||||||||||||||||||
|
Interest rate risk management contracts
(1)
:
|
|||||||||||||||||||||||||||||
|
Interest rate swaps
|
60,000 | 40,000 | 20,000 | — | — | ||||||||||||||||||||||||
| Total commitments | $3,456,069 | $817,210 | $450,692 | $563,613 | $1,624,554 | ||||||||||||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
| Months 1 - 12 | Months 13 - 24 | Months 1 - 12 | Months 13 - 24 | ||||||||||||||||||||
| 100 basis point rate decrease | (2.05%) | (4.73%) | (3.71%) | (5.57%) | |||||||||||||||||||
| 100 basis point rate increase | 5.56 | 7.89 | 2.88 | 1.02 | |||||||||||||||||||
| 200 basis point rate increase | 11.00 | 15.05 | 6.60 | 3.37 | |||||||||||||||||||
| 300 basis point rate increase | 16.47 | 21.15 | 10.35 | 5.53 | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||
| Security Type | Down 100 Basis Points | Up 200 Basis Points | |||||||||
| Obligations of U.S. government-sponsored enterprise securities (callable) | $1,090 | ($10,497) | |||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
12,490 | (59,220) | |||||||||
| Trust preferred debt and other corporate debt securities | (99) | 179 | |||||||||
| Total change in market value as of December 31, 2020 | $13,481 | ($69,538) | |||||||||
| Total change in market value as of December 31, 2019 | $17,741 | ($81,705) | |||||||||
| Description | Page | ||||
|
|
|||||||
|
Edward O. Handy III
Chairman and Chief Executive Officer
|
Ronald S. Ohsberg
Senior Executive Vice President,
Chief Financial Officer and Treasurer
|
|||||||
| February 25, 2021 | ||||||||
|
Washington Trust Bancorp, Inc. and Subsidiaries
|
|||||
|
Consolidated Balance Sheets
|
(Dollars in thousands, except par value)
|
||||
| December 31, | 2020 | 2019 | |||||||||
| Assets: | |||||||||||
| Cash and due from banks |
$
|
$
|
|||||||||
| Short-term investments |
|
|
|||||||||
|
Mortgage loans held for sale, at fair value
|
|
|
|||||||||
|
Available for sale debt securities, at fair value (amortized cost $
|
|
|
|||||||||
| Federal Home Loan Bank stock, at cost |
|
|
|||||||||
| Loans: | |||||||||||
| Total loans |
|
|
|||||||||
| Less: allowance for credit losses on loans |
|
|
|||||||||
| Net loans |
|
|
|||||||||
| Premises and equipment, net |
|
|
|||||||||
| Operating lease right-of-use assets |
|
|
|||||||||
| Investment in bank-owned life insurance |
|
|
|||||||||
| Goodwill |
|
|
|||||||||
| Identifiable intangible assets, net |
|
|
|||||||||
| Other assets |
|
|
|||||||||
| Total assets |
$
|
$
|
|||||||||
| Liabilities: | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing deposits |
$
|
$
|
|||||||||
| Interest-bearing deposits |
|
|
|||||||||
| Total deposits |
|
|
|||||||||
| Federal Home Loan Bank advances |
|
|
|||||||||
| Junior subordinated debentures |
|
|
|||||||||
| Operating lease liabilities |
|
|
|||||||||
| Other liabilities |
|
|
|||||||||
| Total liabilities |
|
|
|||||||||
| Commitments and contingencies (Note 22) |
|
|
|||||||||
| Shareholders’ Equity: | |||||||||||
|
Common stock of $
|
|
|
|||||||||
| Paid-in capital |
|
|
|||||||||
| Retained earnings |
|
|
|||||||||
| Accumulated other comprehensive loss |
(
|
(
|
|||||||||
|
Treasury stock, at cost;
|
(
|
|
|||||||||
| Total shareholders’ equity |
|
|
|||||||||
| Total liabilities and shareholders’ equity |
$
|
$
|
|||||||||
|
Washington Trust Bancorp, Inc. and Subsidiaries
|
|||||
|
Consolidated Statements of Income
|
(Dollars and shares in thousands, except per share amounts)
|
||||
| Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||
| Interest income: | ||||||||||||||
| Interest and fees on loans |
$
|
$
|
$
|
|||||||||||
| Interest on mortgage loans held for sale |
|
|
|
|||||||||||
| Taxable interest on debt securities |
|
|
|
|||||||||||
| Nontaxable interest on debt securities |
|
|
|
|||||||||||
| Dividends on Federal Home Loan Bank stock |
|
|
|
|||||||||||
| Other interest income |
|
|
|
|||||||||||
| Total interest and dividend income |
|
|
|
|||||||||||
| Interest expense: | ||||||||||||||
| Deposits |
|
|
|
|||||||||||
| Federal Home Loan Bank advances |
|
|
|
|||||||||||
| Junior subordinated debentures |
|
|
|
|||||||||||
| Other interest expense |
|
|
|
|||||||||||
| Total interest expense |
|
|
|
|||||||||||
| Net interest income |
|
|
|
|||||||||||
| Provision for credit losses |
|
|
|
|||||||||||
| Net interest income after provision for credit losses |
|
|
|
|||||||||||
| Noninterest income: | ||||||||||||||
| Wealth management revenues |
|
|
|
|||||||||||
| Mortgage banking revenues |
|
|
|
|||||||||||
| Card interchange fees |
|
|
|
|||||||||||
| Service charges on deposit accounts |
|
|
|
|||||||||||
| Loan related derivative income |
|
|
|
|||||||||||
| Income from bank-owned life insurance |
|
|
|
|||||||||||
| Net realized losses on securities |
|
(
|
|
|||||||||||
| Other income |
|
|
|
|||||||||||
| Total noninterest income |
|
|
|
|||||||||||
| Noninterest expense: | ||||||||||||||
| Salaries and employee benefits |
|
|
|
|||||||||||
| Outsourced services |
|
|
|
|||||||||||
| Net occupancy |
|
|
|
|||||||||||
| Equipment |
|
|
|
|||||||||||
| Legal, audit and professional fees |
|
|
|
|||||||||||
| FDIC deposit insurance costs |
|
|
|
|||||||||||
| Advertising and promotion |
|
|
|
|||||||||||
| Amortization of intangibles |
|
|
|
|||||||||||
| Debt prepayment penalties |
|
|
|
|||||||||||
| Change in fair value of contingent consideration |
|
|
(
|
|||||||||||
| Other expenses |
|
|
|
|||||||||||
| Total noninterest expense |
|
|
|
|||||||||||
| Income before income taxes |
|
|
|
|||||||||||
| Income tax expense |
|
|
|
|||||||||||
| Net income |
$
|
$
|
$
|
|||||||||||
| Net income available to common shareholders |
$
|
$
|
$
|
|||||||||||
| Weighted average common shares outstanding - basic |
|
|
|
|||||||||||
| Weighted average common shares outstanding - diluted |
|
|
|
|||||||||||
| Per share information: | Basic earnings per common share |
$
|
$
|
$
|
||||||||||
| Diluted earnings per common share |
$
|
$
|
$
|
|||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||
| Consolidated Statements of Comprehensive Income | (Dollars in thousands) | ||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Net income |
$
|
$
|
$
|
||||||||||||||
| Other comprehensive income (loss), net of tax: | |||||||||||||||||
|
Net change in fair value of available for sale debt securities
|
|
|
(
|
||||||||||||||
|
Net change in fair value of cash flow hedges
|
(
|
(
|
|
||||||||||||||
|
Net change in defined benefit plan obligations
|
(
|
(
|
|
||||||||||||||
|
Total other comprehensive income (loss), net of tax
|
|
|
(
|
||||||||||||||
| Total comprehensive income |
$
|
$
|
$
|
||||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||
|
Consolidated Statements of Changes in Shareholders' Equity
|
(Dollars and shares in thousands)
|
||||
|
Common
Shares Outstanding |
Common
Stock |
Paid-in
Capital |
Retained
Earnings |
Accumulated
Other Comprehensive (Loss) Income |
Treasury
Stock |
Total | |||||||||||||||||
| Balance at December 31, 2017 |
|
$
|
$
|
$
|
($
|
$
|
$
|
||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
||||||||||||||||
| Total other comprehensive loss, net of tax | — | — | — |
(
|
— |
(
|
|||||||||||||||||
|
Cash dividends declared ($
|
— | — | — |
(
|
— | — |
(
|
||||||||||||||||
| Share-based compensation | — | — |
|
— | — | — |
|
||||||||||||||||
|
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered
|
|
|
(
|
— | — |
|
(
|
||||||||||||||||
| Balance at December 31, 2018 |
|
$
|
$
|
$
|
($
|
$
|
$
|
||||||||||||||||
| Cumulative effect of change in accounting principle - ASC 842 | — | — | — |
|
— | — |
|
||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
||||||||||||||||
| Total other comprehensive income, net of tax | — | — | — |
|
— |
|
|||||||||||||||||
|
Cash dividends declared ($
|
— | — | — |
(
|
— | — |
(
|
||||||||||||||||
| Share-based compensation | — | — |
|
— | — | — |
|
||||||||||||||||
| Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered |
|
|
|
— | — |
|
|
||||||||||||||||
| Balance at December 31, 2019 |
|
$
|
$
|
$
|
($
|
$
|
$
|
||||||||||||||||
| Cumulative effect of change in accounting principle - ASC 326 | — | — | — |
(
|
— | — |
(
|
||||||||||||||||
| Net income | — | — | — |
|
— | — |
|
||||||||||||||||
| Total other comprehensive income, net of tax | — | — | — |
|
— |
|
|||||||||||||||||
|
Cash dividends declared ($
|
— | — | — |
(
|
— | — |
(
|
||||||||||||||||
| Share-based compensation | — | — |
|
— | — | — |
|
||||||||||||||||
| Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered |
|
|
(
|
— | — |
|
(
|
||||||||||||||||
| Treasury stock purchased under the 2019 Stock Repurchase Program |
(
|
— | — | — | — |
(
|
(
|
||||||||||||||||
| Balance at December 31, 2020 |
|
$
|
$
|
$
|
($
|
($
|
$
|
||||||||||||||||
|
Washington Trust Bancorp, Inc. and Subsidiaries
|
|||||
|
Consolidated Statements of Cash Flows
|
(Dollars in thousands) | ||||
| Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income |
$
|
$
|
$
|
|||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Provision for credit losses |
|
|
|
|||||||||||
| Depreciation of premises and equipment |
|
|
|
|||||||||||
| Net amortization of premiums and discounts on securities and loans |
|
|
|
|||||||||||
| Amortization of intangibles |
|
|
|
|||||||||||
| Share–based compensation |
|
|
|
|||||||||||
|
Tax (expense) benefit from stock option exercises and other equity awards
|
(
|
|
|
|||||||||||
| Deferred income tax benefit |
(
|
(
|
(
|
|||||||||||
| Income from bank-owned life insurance |
(
|
(
|
(
|
|||||||||||
| Net gains on loan sales, including fair value adjustments |
(
|
(
|
(
|
|||||||||||
| Net realized losses on securities |
|
|
|
|||||||||||
| Proceeds from sales of loans, net |
|
|
|
|||||||||||
| Loans originated for sale |
(
|
(
|
(
|
|||||||||||
| Change in fair value of contingent consideration liability |
|
|
(
|
|||||||||||
|
(Increase) decrease in operating lease right-of-use assets
|
(
|
|
|
|||||||||||
|
Increase (decrease) in operating lease liabilities
|
|
(
|
|
|||||||||||
| Increase in other assets |
(
|
(
|
(
|
|||||||||||
| Increase in other liabilities |
|
|
|
|||||||||||
| Net cash provided by operating activities |
|
|
|
|||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of: | Available for sale debt securities: Mortgage-backed |
(
|
(
|
(
|
||||||||||
| Available for sale debt securities: Other |
(
|
(
|
(
|
|||||||||||
| Proceeds from sales of: | Available for sale debt securities: Other |
|
|
|
||||||||||
|
Maturities, calls and
principal payments of: |
Available for sale debt securities: Mortgage-backed |
|
|
|
||||||||||
| Available for sale debt securities: Other |
|
|
|
|||||||||||
| Held to maturity debt securities: Mortgage-backed |
|
|
|
|||||||||||
| Net redemption (purchases) of Federal Home Loan Bank stock |
|
(
|
(
|
|||||||||||
| Net increase in loans |
(
|
(
|
(
|
|||||||||||
| Purchases of loans |
(
|
(
|
(
|
|||||||||||
| Proceeds from the sale of property acquired through foreclosure or repossession |
|
|
|
|||||||||||
| Purchases of premises and equipment |
(
|
(
|
(
|
|||||||||||
| Proceeds from the sale of premises |
|
|
|
|||||||||||
| Purchases of bank-owned life insurance |
|
|
(
|
|||||||||||
| Proceeds from sale of equity investment in real estate limited partnership |
|
|
|
|||||||||||
| Proceeds from surrender of bank-owned life insurance |
|
|
|
|||||||||||
| Equity investment in real estate limited partnership |
|
(
|
|
|||||||||||
| Net cash used in investing activities |
(
|
(
|
(
|
|||||||||||
|
Washington Trust Bancorp, Inc. and Subsidiaries
|
|||||
| Consolidated Statements of Cash Flows – (continued) | (Dollars in thousands) | ||||
| Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Net increase (decrease) in deposits |
|
(
|
|
|||||||||||
| Proceeds from Federal Home Loan Bank advances |
|
|
|
|||||||||||
| Repayment of Federal Home Loan Bank advances |
(
|
(
|
(
|
|||||||||||
| Proceeds from Payment Protection Program Lending Facility |
|
|
|
|||||||||||
| Repayment of Payment Protection Program Lending Facility |
(
|
|
|
|||||||||||
| Payment of contingent consideration liability |
|
|
(
|
|||||||||||
| Treasury stock purchased |
(
|
|
|
|||||||||||
| Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered |
(
|
|
(
|
|||||||||||
| Cash dividends paid |
(
|
(
|
(
|
|||||||||||
| Net cash provided by financing activities |
|
|
|
|||||||||||
| Net increase in cash and cash equivalents |
|
|
|
|||||||||||
| Cash and cash equivalents at beginning of year |
|
|
|
|||||||||||
| Cash and cash equivalents at end of year |
$
|
$
|
$
|
|||||||||||
| Noncash Activities: | ||||||||||||||
| Loans charged-off |
$
|
$
|
$
|
|||||||||||
| Loans transferred to property acquired through foreclosure or repossession |
|
|
|
|||||||||||
| In conjunction with the adoption of ASC 842, the following assets and liabilities were recognized: | ||||||||||||||
| Operating lease right-of-use assets |
|
|
|
|||||||||||
| Operating lease liabilities |
|
|
|
|||||||||||
| In conjunction with the adoption of ASC 815, the following qualifying debt securities classified as held to maturity were transferred to available for sale: | ||||||||||||||
| Fair value of debt securities transferred from held to maturity to available for sale |
|
|
|
|||||||||||
| Supplemental Disclosures: | ||||||||||||||
| Interest payments |
$
|
$
|
$
|
|||||||||||
| Income tax payments |
|
|
|
|||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| December 31, 2020 | Amortized Cost | Unrealized Gains | Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||
| Available for Sale Debt Securities: | |||||||||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
$
|
$
|
($
|
$
|
$
|
||||||||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
(
|
|
|
||||||||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
(
|
|
|
||||||||||||||||||||||||
|
Corporate bonds
|
|
|
(
|
|
|
||||||||||||||||||||||||
| Total available for sale debt securities |
$
|
$
|
($
|
$
|
$
|
||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| December 31, 2019 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||
| Available for Sale Debt Securities: | |||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
$
|
$
|
($
|
$
|
|||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
(
|
|
|||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
(
|
|
|||||||||||||||||||
|
Corporate bonds
|
|
|
(
|
|
|||||||||||||||||||
| Total available for sale debt securities |
$
|
$
|
($
|
$
|
|||||||||||||||||||
| (Dollars in thousands) |
Available for Sale
|
|||||||
| December 31, 2020 | Amortized Cost | Fair Value | ||||||
| Due in one year or less |
$
|
$
|
||||||
|
Due after one year to five years
|
|
|
||||||
|
Due after five years to ten years
|
|
|
||||||
|
Due after ten years
|
|
|
||||||
|
Total securities
|
$
|
$
|
||||||
| (Dollars in thousands) | |||||||||||||||||
| For the periods ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Proceeds from sales |
$
|
$
|
$
|
||||||||||||||
| Gross realized gains |
$
|
$
|
$
|
||||||||||||||
| Gross realized losses |
|
(
|
|
||||||||||||||
| Net realized losses on securities |
$
|
($
|
$
|
||||||||||||||
| (Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||
| December 31, 2020 | # |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
|
$
|
($
|
|
$
|
$
|
|
$
|
($
|
||||||||||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
(
|
|
|
|
|
|
(
|
||||||||||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
|
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||
| Corporate bonds |
|
|
|
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||
|
Total temporarily impaired securities
|
|
$
|
($
|
|
$
|
($
|
|
$
|
($
|
||||||||||||||||||||||||||
| (Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||
| December 31, 2019 | # |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
# |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
|
$
|
($
|
|
$
|
($
|
|
$
|
($
|
||||||||||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
(
|
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
|
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||
| Corporate bonds |
|
|
|
|
|
(
|
|
|
(
|
||||||||||||||||||||||||||
|
Total temporarily impaired securities
|
|
$
|
($
|
|
$
|
($
|
|
$
|
($
|
||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||
| December 31, | 2020 | 2019 | ||||||
| Commercial: | ||||||||
|
Commercial real estate
(1)
|
$
|
$
|
||||||
|
Commercial & industrial
(2)
|
|
|
||||||
| Total commercial |
|
|
||||||
| Residential Real Estate: | ||||||||
|
Residential real estate
(3)
|
|
|
||||||
| Consumer: | ||||||||
|
Home equity
|
|
|
||||||
|
Other
(4)
|
|
|
||||||
| Total consumer |
|
|
||||||
|
Total loans
(5)
|
$
|
$
|
||||||
| (Dollars in thousands) | Days Past Due | ||||||||||||||||||||||||||||||||||
| December 31, 2020 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||
|
Commercial real estate
|
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
|
Commercial & industrial
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total commercial |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Residential Real Estate: | |||||||||||||||||||||||||||||||||||
|
Residential real estate
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||
|
Home equity
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total consumer |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total loans |
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
| (Dollars in thousands) | Days Past Due | ||||||||||||||||||||||||||||||||||
| December 31, 2019 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||
|
Commercial real estate
|
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
|
Commercial & industrial
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total commercial |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Residential Real Estate: | |||||||||||||||||||||||||||||||||||
|
Residential real estate
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||
|
Home equity
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total consumer |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total loans |
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Commercial: | |||||||||||
|
Commercial real estate
|
$
|
$
|
|||||||||
|
Commercial & industrial
|
|
|
|||||||||
| Total commercial |
|
|
|||||||||
| Residential Real Estate: | |||||||||||
|
Residential real estate
|
|
|
|||||||||
| Consumer: | |||||||||||
|
Home equity
|
|
|
|||||||||
|
Other
|
|
|
|||||||||
| Total consumer |
|
|
|||||||||
| Total nonaccrual loans |
$
|
$
|
|||||||||
| Accruing loans 90 days or more past due |
$
|
$
|
|||||||||
| (Dollars in thousands) | Interest Income Recognized | ||||
| Year ended December 31, 2020 | |||||
| Commercial: | |||||
| Commercial real estate |
$
|
||||
| Commercial & industrial |
|
||||
| Total commercial |
|
||||
| Residential Real Estate: | |||||
| Residential real estate |
|
||||
| Consumer: | |||||
| Home equity |
|
||||
| Other |
|
||||
| Total consumer |
|
||||
| Total |
$
|
||||
| (Dollars in thousands) | ||||||||
| December 31, | 2020 | 2019 | ||||||
| Accruing TDRs |
$
|
$
|
||||||
| Nonaccrual TDRs |
|
|
||||||
| Total TDRs |
$
|
$
|
||||||
| Specific reserves on TDRs included in the ACL on loans |
$
|
$
|
||||||
| Additional commitments to lend to borrowers with TDRs |
$
|
$
|
||||||
| (Dollars in thousands) | Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||||
| # of Loans | Pre-Modifications | Post-Modifications | |||||||||||||||||||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||
|
Commercial real estate
|
|
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
|
Commercial & industrial
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total commercial |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Residential Real Estate: | |||||||||||||||||||||||||||||||||||
|
Residential real estate
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||||||||
|
Home equity
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| Total consumer |
|
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
| Total |
|
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||
| Years ended December 31, | 2020 | 2019 | |||||||||
| Below-market interest rate concession |
$
|
$
|
|||||||||
| Payment deferral |
|
|
|||||||||
| Maturity / amortization concession |
|
|
|||||||||
| Interest only payments |
|
|
|||||||||
|
Combination
(1)
|
|
|
|||||||||
| Total |
$
|
$
|
|||||||||
| (Dollars in thousands) | # of Loans | Recorded Investment | |||||||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
| Commercial real estate |
|
|
$
|
$
|
|||||||||||||||||||
| Commercial & industrial |
|
|
|
|
|||||||||||||||||||
| Residential real estate: | |||||||||||||||||||||||
| Residential real estate |
|
|
|
|
|||||||||||||||||||
| Consumer: | |||||||||||||||||||||||
| Home equity |
|
|
|
|
|||||||||||||||||||
| Other |
|
|
|
|
|||||||||||||||||||
| Total |
|
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Carrying Value | Related Allowance | ||||||
| Commercial: | ||||||||
|
Commercial real estate
(1)
|
$
|
$
|
||||||
|
Commercial & industrial
(2)
|
|
|
||||||
| Total commercial |
|
|
||||||
| Residential Real Estate: | ||||||||
|
Residential real estate
(3)
|
|
|
||||||
| Consumer: | ||||||||
|
Home equity
(3)
|
|
|
||||||
|
Other
|
|
|
||||||
| Total consumer |
|
|
||||||
| Total |
$
|
$
|
||||||
| (Dollars in thousands) |
Recorded Investment
(1)
|
Unpaid Principal | Related Allowance | ||||||||||||||
| No Related Allowance Recorded | |||||||||||||||||
| Residential Real Estate: | |||||||||||||||||
| Residential real estate |
$
|
$
|
$
|
||||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
| Total consumer |
|
|
|
||||||||||||||
| Subtotal |
|
|
|
||||||||||||||
| With Related Allowance Recorded | |||||||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
$
|
$
|
$
|
||||||||||||||
|
Commercial & industrial
|
|
|
|
||||||||||||||
| Total commercial |
|
|
|
||||||||||||||
| Residential Real Estate: | |||||||||||||||||
| Residential real estate |
|
|
|
||||||||||||||
| Consumer: | |||||||||||||||||
|
Home equity
|
|
|
|
||||||||||||||
|
Other
|
|
|
|
||||||||||||||
| Total consumer |
|
|
|
||||||||||||||
| Subtotal |
|
|
|
||||||||||||||
| Total impaired loans |
$
|
$
|
$
|
||||||||||||||
| Total: | |||||||||||||||||
| Commercial |
$
|
$
|
$
|
||||||||||||||
| Residential real estate |
|
|
|
||||||||||||||
| Consumer |
|
|
|
||||||||||||||
| Total impaired loans |
$
|
$
|
$
|
||||||||||||||
| (Dollars in thousands) |
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||||||||||
| Years ended December 31, | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
| Commercial: | |||||||||||||||||||||||
|
Commercial real estate
|
$
|
$
|
$
|
$
|
|||||||||||||||||||
|
Commercial & industrial
|
|
|
|
|
|||||||||||||||||||
|
Total commercial
|
|
|
|
|
|||||||||||||||||||
| Residential real estate: | |||||||||||||||||||||||
|
Residential real estate
|
|
|
|
|
|||||||||||||||||||
| Consumer: | |||||||||||||||||||||||
|
Home equity
|
|
|
|
|
|||||||||||||||||||
|
Other
|
|
|
|
|
|||||||||||||||||||
| Total consumer |
|
|
|
|
|||||||||||||||||||
| Totals |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Term Loans Amortized Cost by Origination Year | ||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans Amortized Cost | Revolving Loans Converted to Term Loans | Total | |||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||
| CRE: | |||||||||||||||||||||||||||||
|
Pass
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||||
|
Special Mention
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Classified
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total CRE
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| C&I: | |||||||||||||||||||||||||||||
|
Pass
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Special Mention
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Classified
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total C&I
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Residential Real Estate: | |||||||||||||||||||||||||||||
| Residential real estate: | |||||||||||||||||||||||||||||
|
Current
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Past Due
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total residential real estate
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Consumer: | |||||||||||||||||||||||||||||
| Home equity: | |||||||||||||||||||||||||||||
|
Current
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Past Due
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total home equity
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Other: | |||||||||||||||||||||||||||||
|
Current
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Past Due
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total other
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
| Total Loans |
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Pass | Special Mention | Classified | |||||||||||||||
| Commercial: | |||||||||||||||||
|
Commercial real estate
|
$
|
$
|
$
|
||||||||||||||
|
Commercial & industrial
|
|
|
|
||||||||||||||
| Total commercial |
$
|
$
|
$
|
||||||||||||||
| (Dollars in thousands) | |||||||||||
| As of December 31, 2019 | Current | Past Due | |||||||||
| Residential Real Estate: | |||||||||||
| Residential real estate |
$
|
$
|
|||||||||
| Consumer: | |||||||||||
|
Home equity
|
|
|
|||||||||
|
Other
|
|
|
|||||||||
| Total consumer |
$
|
$
|
|||||||||
| (Dollars in thousands) |
Loan Servicing
Rights |
Valuation
Allowance |
Total | ||||||||||||||
| Balance at December 31, 2017 |
$
|
$
|
$
|
||||||||||||||
| Loan servicing rights capitalized |
|
|
|
||||||||||||||
| Amortization |
(
|
|
(
|
||||||||||||||
| Balance at December 31, 2018 |
|
|
|
||||||||||||||
| Loan servicing rights capitalized |
|
|
|
||||||||||||||
| Amortization |
(
|
|
(
|
||||||||||||||
| Balance at December 31, 2019 |
|
|
|
||||||||||||||
| Loan servicing rights capitalized |
|
|
|
||||||||||||||
| Amortization |
(
|
|
(
|
||||||||||||||
| Increase in impairment reserve |
|
(
|
(
|
||||||||||||||
| Balance at December 31, 2020 |
$
|
($
|
$
|
||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Years ending December 31: | 2021 |
$
|
||||||||||||
| 2022 |
|
|||||||||||||
| 2023 |
|
|||||||||||||
| 2024 |
|
|||||||||||||
| 2025 |
|
|||||||||||||
| 2026 and thereafter |
|
|||||||||||||
| Total estimated amortization expense |
$
|
|||||||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Residential real estate |
$
|
$
|
|||||||||
| Commercial |
|
|
|||||||||
| Total |
$
|
$
|
|||||||||
| (Dollars in thousands) | Commercial | Consumer | ||||||||||||||||||||||||
| CRE | C&I | Total Commercial | Residential Real Estate | Home Equity | Other | Total Consumer | Total | |||||||||||||||||||
|
Beginning Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| Adoption of ASC 326 |
|
|
|
|
(
|
(
|
(
|
|
||||||||||||||||||
| Charge-offs |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Provision |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Ending Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| (Dollars in thousands) | Commercial | Consumer | ||||||||||||||||||||||||
| CRE | C&I | Total Commercial | Residential Real Estate | Home Equity | Other | Total Consumer | Total | |||||||||||||||||||
|
Beginning Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| Charge-offs |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Provision |
|
(
|
(
|
|
|
|
|
|
||||||||||||||||||
|
Ending Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| (Dollars in thousands) | Commercial | Consumer | ||||||||||||||||||||||||
| CRE | C&I | Total Commercial | Residential Real Estate | Home Equity | Other | Total Consumer | Total | |||||||||||||||||||
|
Beginning Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| Charge-offs |
(
|
(
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||
| Recoveries |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Provision |
|
|
|
(
|
(
|
(
|
(
|
|
||||||||||||||||||
|
Ending Balance
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| (Dollars in thousands) | Loans |
Related
Allowance |
||||||
| Loans Individually Evaluated for Impairment | ||||||||
| Commercial: | ||||||||
|
Commercial real estate
|
$
|
$
|
||||||
|
Commercial & industrial
|
|
|
||||||
| Total commercial |
|
|
||||||
| Residential Real Estate: | ||||||||
| Residential real estate |
|
|
||||||
| Consumer: | ||||||||
| Home equity |
|
|
||||||
| Other |
|
|
||||||
| Total consumer |
|
|
||||||
| Subtotal |
|
|
||||||
| Loans Collectively Evaluated for Impairment | ||||||||
| Commercial: | ||||||||
|
Commercial real estate
|
|
|
||||||
|
Commercial & industrial
|
|
|
||||||
|
Total commercial
|
|
|
||||||
| Residential Real Estate: | ||||||||
| Residential real estate |
|
|
||||||
| Consumer: | ||||||||
| Home equity |
|
|
||||||
| Other |
|
|
||||||
| Total consumer |
|
|
||||||
| Subtotal |
|
|
||||||
| Total |
$
|
$
|
||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Land |
$
|
$
|
|||||||||
| Premises and improvements |
|
|
|||||||||
| Furniture, fixtures and equipment |
|
|
|||||||||
| Total premises and equipment |
|
|
|||||||||
| Less: accumulated depreciation |
|
|
|||||||||
| Total premises and equipment, net |
$
|
$
|
|||||||||
| At December 31, | 2020 | 2019 | |||||||||
| Weighted average discount rate |
|
% |
|
% | |||||||
| Range of lease expiration dates |
|
|
|||||||||
|
Range of lease renewal options
|
|
|
|||||||||
|
Weighted average remaining lease term
|
|
|
|||||||||
| (Dollars in thousands) | ||||||||
| Years ending December 31: | 2021 |
$
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| 2026 and thereafter |
|
|||||||
|
Total operating lease payments
(1)
|
|
|||||||
| Less: interest |
|
|||||||
|
Present value of operating lease liabilities
(2)
|
$
|
|||||||
| (Dollars in thousands) | ||||||||
| Year ended December 31, | 2020 | 2019 | ||||||
| Lease Expense: | ||||||||
| Operating lease expense |
$
|
$
|
||||||
| Variable lease expense |
|
|
||||||
|
Total lease expense
(1)
|
$
|
$
|
||||||
| Cash Paid: | ||||||||
| Cash paid reducing operating lease liabilities |
$
|
$
|
||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Commercial Banking Segment |
$
|
$
|
|||||||||
| Wealth Management Services Segment |
|
|
|||||||||
| Total goodwill |
$
|
$
|
|||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Gross carrying amount |
$
|
$
|
|||||||||
| Accumulated amortization |
|
|
|||||||||
| Net amount |
$
|
$
|
|||||||||
| (Dollars in thousands) | ||||||||
| Years ending December 31, | 2021 |
$
|
||||||
| 2022 |
|
|||||||
| 2023 |
|
|||||||
| 2024 |
|
|||||||
| 2025 |
|
|||||||
| 2026 and thereafter |
|
|||||||
| (Dollars in thousands) | |||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Current Tax Expense: | |||||||||||||||||
|
Federal
|
$
|
$
|
$
|
||||||||||||||
|
State
|
|
|
|
||||||||||||||
|
Total current tax expense
|
|
|
|
||||||||||||||
| Deferred Tax (Benefit) Expense: | |||||||||||||||||
|
Federal
|
(
|
(
|
|
||||||||||||||
|
State
|
(
|
(
|
(
|
||||||||||||||
| Total deferred tax (benefit) expense |
(
|
(
|
(
|
||||||||||||||
| Total income tax expense |
$
|
$
|
$
|
||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||||||||||||||
| (Dollars in thousands) | Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||||||||||
| Tax expense at Federal statutory rate |
$
|
|
% |
$
|
|
% |
$
|
|
% | |||||||||||||||||
| Increase (decrease) in taxes resulting from: | ||||||||||||||||||||||||||
|
State income tax expense, net of federal tax benefit
|
|
|
|
|
|
|
||||||||||||||||||||
|
Tax-exempt income, net
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
|
BOLI
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
| Investment in low-income housing limited partnership |
(
|
(
|
|
|
|
|
||||||||||||||||||||
|
Federal tax credits
|
(
|
(
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
|
Dividends received deduction
|
(
|
|
(
|
|
(
|
(
|
||||||||||||||||||||
|
Change in fair value of contingent consideration
|
|
|
|
|
(
|
(
|
||||||||||||||||||||
|
Share-based compensation
|
|
|
(
|
(
|
(
|
(
|
||||||||||||||||||||
|
Other
|
|
|
|
|
|
|
||||||||||||||||||||
| Total income tax expense |
$
|
|
% |
$
|
|
% |
$
|
|
% | |||||||||||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Deferred Tax Assets: | |||||||||||
| Allowance for credit losses on loans |
$
|
$
|
|||||||||
|
Operating lease liabilities
|
|
|
|||||||||
|
Deferred compensation
|
|
|
|||||||||
|
Deferred loan origination fees
|
|
|
|||||||||
|
Defined benefit pension obligations
|
|
|
|||||||||
|
Share-based compensation
|
|
|
|||||||||
|
Other
|
|
|
|||||||||
|
Deferred tax assets
|
|
|
|||||||||
| Deferred Tax Liabilities: | |||||||||||
|
Operating lease right-of-use assets
|
(
|
(
|
|||||||||
|
Deferred loan origination costs
|
(
|
(
|
|||||||||
|
Net unrealized gains on available for sale debt securities
|
(
|
(
|
|||||||||
|
Loan servicing rights
|
(
|
(
|
|||||||||
|
Amortization of intangibles
|
(
|
(
|
|||||||||
| Depreciation of premises and equipment |
(
|
(
|
|||||||||
|
Other
|
(
|
(
|
|||||||||
|
Deferred tax liabilities
|
(
|
(
|
|||||||||
| Net deferred tax asset |
$
|
$
|
|||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Noninterest-bearing demand deposits |
$
|
$
|
|||||||||
| Interest-bearing demand deposits |
|
|
|||||||||
| NOW accounts |
|
|
|||||||||
| Money market accounts |
|
|
|||||||||
| Savings accounts |
|
|
|||||||||
|
Time deposits
(1)
|
|
|
|||||||||
| Total deposits |
$
|
$
|
|||||||||
| (Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | ||||||||||||
| Years ending December 31: | 2021 |
$
|
|
% | ||||||||||
| 2022 |
|
|
||||||||||||
| 2023 |
|
|
||||||||||||
| 2024 |
|
|
||||||||||||
| 2025 |
|
|
||||||||||||
| 2026 and thereafter |
|
|
||||||||||||
| Balance at December 31, 2020 |
$
|
|
% | |||||||||||
| (Dollars in thousands) | |||||
| January 1, 2021 to March 31, 2021 |
$
|
||||
| April 1, 2021 to June 30, 2021 |
|
||||
| July 1, 2021 to December 31, 2021 |
|
||||
| January 1, 2022 and beyond |
|
||||
| Balance at December 31, 2020 |
$
|
||||
| (Dollars in thousands) |
Scheduled
Maturity |
Weighted
Average Rate |
||||||
| 2021 |
$
|
|
% | |||||
| 2022 |
|
|
||||||
| 2023 |
|
|
||||||
| 2024 |
|
|
||||||
| 2025 |
|
|
||||||
| 2026 and thereafter |
|
|
||||||
| Total |
$
|
|
% | |||||
| (Dollars in thousands) | |||||||||||
| As of and for the years ended December 31, | 2020 | 2019 | 2018 | ||||||||
| Average amount outstanding during the period |
$
|
$
|
$
|
||||||||
| Amount outstanding at end of period |
|
|
|
||||||||
| Highest month end balance during period |
|
|
|
||||||||
| Weighted-average interest rate at end of period |
|
% |
|
% |
|
% | |||||
| Weighted-average interest rate during the period |
|
|
|
||||||||
| (Dollars in thousands) | Actual |
For Capital Adequacy
Purposes |
To Be “Well Capitalized” Under Prompt Corrective Action Regulations | |||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||
| Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
$
|
|
% |
$
|
|
% | N/A | N/A | ||||||||||||||||||
|
Bank
|
|
|
|
|
$
|
|
% | |||||||||||||||||||
| Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
| Common Equity Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
|
Tier 1 Capital (to Average Assets):
(1)
|
||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||||||||
| Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
| Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
| Common Equity Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
|
Tier 1 Capital (to Average Assets):
(1)
|
||||||||||||||||||||||||||
|
Corporation
|
|
|
|
|
N/A | N/A | ||||||||||||||||||||
|
Bank
|
|
|
|
|
|
|
||||||||||||||||||||
| (Dollars in thousands) | Derivative Assets | Derivative Liabilities | |||||||||||||||||||||
| Fair Value | Fair Value | ||||||||||||||||||||||
| Balance Sheet Location |
Dec 31,
2020 |
Dec 31,
2019 |
Balance Sheet Location |
Dec 31,
2020 |
Dec 31,
2019 |
||||||||||||||||||
| Derivatives Designated as Cash Flow Hedging Instruments: | |||||||||||||||||||||||
| Interest rate risk management contracts: | |||||||||||||||||||||||
| Interest rate caps | Other assets |
$
|
$
|
Other liabilities |
$
|
$
|
|||||||||||||||||
| Interest rate swaps | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Interest rate floors | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Derivatives not Designated as Hedging Instruments: | |||||||||||||||||||||||
| Loan related derivative contracts: | |||||||||||||||||||||||
| Interest rate swaps with customers | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Mirror swaps with counterparties | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Risk participation agreements | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Mortgage loan commitments: | |||||||||||||||||||||||
| Interest rate lock commitments | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Forward sale commitments | Other assets |
|
|
Other liabilities |
|
|
|||||||||||||||||
| Gross amounts |
|
|
|
|
|||||||||||||||||||
|
Less: amounts offset (
1)
|
|
|
|
|
|||||||||||||||||||
| Derivative balances, net of offset |
|
|
|
|
|||||||||||||||||||
|
Less: collateral pledged
(2)
|
|
|
|
|
|||||||||||||||||||
| Net amounts |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax | ||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||
|
Derivatives Designated as Cash Flow Hedging Instruments:
|
|||||||||||
|
Interest rate risk management contracts:
|
|||||||||||
|
Interest rate caps
|
$
|
$
|
$
|
||||||||
|
Interest rate swaps
|
(
|
(
|
|
||||||||
|
Interest rate floors
|
|
|
|
||||||||
| Total |
($
|
($
|
$
|
||||||||
| (Dollars in thousands) |
Amount of Gain (Loss)
Recognized in Income on Derivatives |
|||||||||||||
| Years ended December 31, | Statement of Income Location | 2020 | 2019 | 2018 | ||||||||||
|
Derivatives not Designated as Hedging Instruments:
|
||||||||||||||
| Loan related derivative contracts: | ||||||||||||||
|
Interest rate swaps with customers
|
Loan related derivative income |
$
|
$
|
($
|
||||||||||
|
Mirror swaps with counterparties
|
Loan related derivative income |
(
|
(
|
|
||||||||||
|
Risk participation agreements
|
Loan related derivative income |
|
|
(
|
||||||||||
|
Foreign exchange contracts
|
Loan related derivative income |
|
|
|
||||||||||
| Mortgage loan commitments: | ||||||||||||||
|
Interest rate lock commitments
|
Mortgage banking revenues |
|
|
(
|
||||||||||
|
Forward sale commitments
|
Mortgage banking revenues |
(
|
(
|
|
||||||||||
| Total |
($
|
$
|
$
|
|||||||||||
| (Dollars in thousands) | ||||||||
| December 31, | 2020 | 2019 | ||||||
| Aggregate fair value |
$
|
$
|
||||||
|
Aggregate principal balance
|
|
|
||||||
| Difference between fair value and principal balance |
$
|
$
|
||||||
| (Dollars in thousands) | Total |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Available for sale debt securities: | |||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
$
|
$
|
$
|
$
|
|||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
|
|
|||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
|
|
|||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
|||||||||||||||||||
| Mortgage loans held for sale |
|
|
|
|
|||||||||||||||||||
| Derivative assets |
|
|
|
|
|||||||||||||||||||
| Total assets at fair value on a recurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivative liabilities |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Total liabilities at fair value on a recurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Total |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||||||||
| December 31, 2019 | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Available for sale debt securities: | |||||||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
$
|
$
|
$
|
$
|
|||||||||||||||||||
|
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
|
|
|
|
|
|||||||||||||||||||
|
Individual name issuer trust preferred debt securities
|
|
|
|
|
|||||||||||||||||||
|
Corporate bonds
|
|
|
|
|
|||||||||||||||||||
| Mortgage loans held for sale |
|
|
|
|
|||||||||||||||||||
| Derivative assets |
|
|
|
|
|||||||||||||||||||
| Total assets at fair value on a recurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivative liabilities |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Total liabilities at fair value on a recurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Total |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Collateral dependent individually analyzed loans |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Loan servicing rights |
|
|
|
|
|||||||||||||||||||
| Total assets at fair value on a nonrecurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Total |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
|||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Collateral dependent impaired loans |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Property acquired through foreclosure or repossession |
|
|
|
|
|||||||||||||||||||
| Total assets at fair value on a nonrecurring basis |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||
| Collateral dependent individually analyzed loans |
$
|
Appraisals of collateral | Discount for costs to sell |
|
||||||||||||||||
| Appraisal adjustments |
|
|||||||||||||||||||
|
Loan servicing rights
|
|
Discounted Cash Flow | Discount Rate |
|
||||||||||||||||
| Prepayment rates |
|
|||||||||||||||||||
| (Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||||||||||||
| December 31, 2019 | ||||||||||||||||||||
|
Collateral dependent impaired loans
|
$
|
Appraisals of collateral | Discount for costs to sell |
|
||||||||||||||||
| Appraisal adjustments |
|
|||||||||||||||||||
|
Property acquired through foreclosure or repossession
|
|
Appraisals of collateral | Discount for costs to sell |
|
||||||||||||||||
| Appraisal adjustments |
|
|||||||||||||||||||
| (Dollars in thousands) | Carrying Amount |
Total
Fair Value |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||
| December 31, 2020 | |||||||||||||||||
| Financial Assets: | |||||||||||||||||
| Loans, net of allowance for credit losses on loans |
$
|
$
|
$
|
$
|
$
|
||||||||||||
| Financial Liabilities: | |||||||||||||||||
| Time deposits |
$
|
$
|
$
|
$
|
$
|
||||||||||||
| FHLB advances |
|
|
|
|
|
||||||||||||
| Junior subordinated debentures |
|
|
|
|
|
||||||||||||
| (Dollars in thousands) | Carrying Amount |
Total
Fair Value |
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||
| December 31, 2019 | |||||||||||||||||
| Financial Assets: | |||||||||||||||||
| Loans, net of allowance for loan losses |
$
|
$
|
$
|
$
|
$
|
||||||||||||
| Financial Liabilities: | |||||||||||||||||
| Time deposits |
$
|
$
|
$
|
$
|
$
|
||||||||||||
| FHLB advances |
|
|
|
|
|
||||||||||||
| Junior subordinated debentures |
|
|
|
|
|
||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | |||||||||||||||||||||||
| (Dollars in thousands) |
Revenue
(1)
|
ASC 606 Revenue
(2)
|
Revenue
(1)
|
ASC 606 Revenue
(2)
|
Revenue
(1)
|
ASC 606 Revenue
(2)
|
||||||||||||||||||||
| Net interest income |
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||
|
Asset-based wealth management revenues
|
|
|
|
|
|
|
||||||||||||||||||||
|
Transaction-based wealth management revenues
|
|
|
|
|
|
|
||||||||||||||||||||
|
Total wealth management revenues
|
|
|
|
|
|
|
||||||||||||||||||||
|
Mortgage banking revenues
|
|
|
|
|
|
|
||||||||||||||||||||
|
Card interchange fees
|
|
|
|
|
|
|
||||||||||||||||||||
|
Service charges on deposit accounts
|
|
|
|
|
|
|
||||||||||||||||||||
|
Loan related derivative income
|
|
|
|
|
|
|
||||||||||||||||||||
|
Income from bank-owned life insurance
|
|
|
|
|
|
|
||||||||||||||||||||
|
Net realized losses on securities
|
|
|
(
|
|
|
|
||||||||||||||||||||
|
Other income
|
|
|
|
|
|
|
||||||||||||||||||||
| Total noninterest income |
|
|
|
|
|
|
||||||||||||||||||||
| Total revenues |
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||||
| (Dollars in thousands) | |||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||
| Revenue recognized at a point in time: | |||||||||||
| Card interchange fees |
$
|
$
|
$
|
||||||||
| Service charges on deposit accounts |
|
|
|
||||||||
| Other income |
|
|
|
||||||||
| Revenue recognized over time: | |||||||||||
|
Wealth management revenues
|
|
|
|
||||||||
|
Service charges on deposit accounts
|
|
|
|
||||||||
|
Other income
|
|
|
|
||||||||
| Total revenues from contracts in scope of ASC 606 |
$
|
$
|
$
|
||||||||
| (Dollars in thousands) |
Qualified
Pension Plan |
Non-Qualified
Retirement Plans |
|||||||||||||||||||||
| At December 31, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Change in Benefit Obligation: | |||||||||||||||||||||||
|
Benefit obligation at beginning of period
|
$
|
$
|
$
|
$
|
|||||||||||||||||||
|
Service cost
|
|
|
|
|
|||||||||||||||||||
|
Interest cost
|
|
|
|
|
|||||||||||||||||||
| Actuarial loss |
|
|
|
|
|||||||||||||||||||
|
Benefits paid
|
(
|
(
|
(
|
(
|
|||||||||||||||||||
|
Administrative expenses
|
(
|
(
|
|
|
|||||||||||||||||||
|
Benefit obligation at end of period
|
|
|
|
|
|||||||||||||||||||
| Change in Plan Assets: | |||||||||||||||||||||||
|
Fair value of plan assets at beginning of period
|
|
|
|
|
|||||||||||||||||||
|
Actual return on plan assets
|
|
|
|
|
|||||||||||||||||||
|
Employer contributions
|
|
|
|
|
|||||||||||||||||||
|
Benefits paid
|
(
|
(
|
(
|
(
|
|||||||||||||||||||
|
Administrative expenses
|
(
|
(
|
|
|
|||||||||||||||||||
|
Fair value of plan assets at end of period
|
|
|
|
|
|||||||||||||||||||
| Funded (unfunded) status at end of period |
$
|
$
|
($
|
($
|
|||||||||||||||||||
| (Dollars in thousands) |
Qualified
Pension Plan |
Non-Qualified
Retirement Plans |
|||||||||||||||||||||
| At December 31, | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Net actuarial loss included in AOCI, pre-tax |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) |
Qualified
Pension Plan |
Non-Qualified
Retirement Plans |
|||||||||||||||||||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||||||
| Net Periodic Benefit Cost: | |||||||||||||||||||||||||||||||||||
|
Service cost
(1)
|
$
|
$
|
$
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
|
Interest cost
(2)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Expected return on plan assets
(2)
|
(
|
(
|
(
|
|
|
|
|||||||||||||||||||||||||||||
|
Amortization of prior service credit
(2)
|
|
(
|
(
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Recognized net actuarial loss
(2)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Net periodic benefit cost
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis):
|
|||||||||||||||||||||||||||||||||||
|
Net loss (gain)
|
|
|
(
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Prior service credit
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Recognized in other comprehensive income (loss)
|
|
|
(
|
|
|
(
|
|||||||||||||||||||||||||||||
|
Total recognized in net periodic benefit cost and other comprehensive income (loss)
|
$
|
$
|
($
|
$
|
$
|
$
|
|||||||||||||||||||||||||||||
|
Qualified
Pension Plan |
Non-Qualified Retirement Plans | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Measurement date | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2019 | |||||||||||||||||||
| Discount rate |
|
% |
|
% |
|
% |
|
% | |||||||||||||||
| Rate of compensation increase |
|
|
|
|
|||||||||||||||||||
| Qualified Pension Plan | Non-Qualified Retirement Plans | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||
| Measurement date | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |||||||||||||||||||||||||||||
|
Equivalent single discount rate for benefit obligations
|
|
% |
|
% |
|
% |
|
% |
|
% |
|
% | |||||||||||||||||||||||
|
Equivalent single discount rate for service cost
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Equivalent single discount rate for interest cost
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Expected long-term return on plan assets
|
|
|
|
N/A | N/A | N/A | |||||||||||||||||||||||||||||
|
Rate of compensation increase
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Fair Value Measurements Using |
Assets at
Fair Value |
||||||||||||||||||||||
| December 31, 2020 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| Obligations of U.S. government-sponsored enterprises |
|
|
|
|
|||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|
|||||||||||||||||||
| Corporate bonds |
|
|
|
|
|||||||||||||||||||
| Common stocks |
|
|
|
|
|||||||||||||||||||
| Mutual funds |
|
|
|
|
|||||||||||||||||||
| Total plan assets |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Fair Value Measurements Using |
Assets at
Fair Value |
||||||||||||||||||||||
| December 31, 2019 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents |
$
|
$
|
$
|
$
|
|||||||||||||||||||
|
Obligations of U.S. government-sponsored enterprises
|
|
|
|
|
|||||||||||||||||||
| Obligations of states and political subdivisions |
|
|
|
|
|||||||||||||||||||
| Corporate bonds |
|
|
|
|
|||||||||||||||||||
| Common stocks |
|
|
|
|
|||||||||||||||||||
| Mutual funds |
|
|
|
|
|||||||||||||||||||
| Total plan assets |
$
|
$
|
$
|
$
|
|||||||||||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Asset Category: | |||||||||||
| Cash and cash equivalents |
|
% |
|
% | |||||||
|
Fixed income securities
(1)
|
|
|
|||||||||
|
Equity securities
(2)
|
|
|
|||||||||
| Total |
|
% |
|
% | |||||||
| (Dollars in thousands) |
Qualified
Pension Plan |
Non-Qualified
Retirement Plans |
||||||||||||
| Years ending December 31, | 2021 |
$
|
$
|
|||||||||||
| 2022 |
|
|
||||||||||||
| 2023 |
|
|
||||||||||||
| 2024 |
|
|
||||||||||||
| 2025 |
|
|
||||||||||||
| 2026 and thereafter |
|
|
||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Share-based compensation expense |
$
|
$
|
$
|
||||||||||||||
|
Related income tax benefits
(1)
|
$
|
$
|
$
|
||||||||||||||
| 2020 | 2019 | 2018 | |||||||||||||||
| Options granted |
|
|
|
||||||||||||||
| Cliff vesting period (years) |
|
|
|
||||||||||||||
| Expected term (years) |
|
|
|
||||||||||||||
| Expected dividend yield |
|
% |
|
% |
|
% | |||||||||||
| Weighted average expected volatility |
|
% |
|
% |
|
% | |||||||||||
| Weighted average risk-free interest rate |
|
% |
|
% |
|
% | |||||||||||
| Weighted average grant-date fair value |
$
|
$
|
$
|
||||||||||||||
| Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (000’s) | ||||||||||||||||||||
| Beginning of period |
|
$
|
|||||||||||||||||||||
| Granted |
|
|
|||||||||||||||||||||
| Exercised |
(
|
|
|||||||||||||||||||||
| Forfeited or expired |
|
|
|||||||||||||||||||||
| End of period |
|
$
|
|
$
|
|||||||||||||||||||
| At end of period: | |||||||||||||||||||||||
| Options exercisable |
|
$
|
|
$
|
|||||||||||||||||||
| Options expected to vest in future periods |
|
$
|
|
$
|
|||||||||||||||||||
| Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||
| Exercise Price Ranges |
Number of
Shares |
Weighted Average
Remaining Life (Years) |
Weighted Average
Exercise Price |
Number of Shares |
Weighted Average
Exercise Price |
||||||||||||||||||||||||
|
$
|
|
|
|
|
|
||||||||||||||||||||||||
|
$
|
|
|
|
|
|
||||||||||||||||||||||||
|
$
|
|
|
|
|
|
||||||||||||||||||||||||
|
$
|
|
|
|
|
|
||||||||||||||||||||||||
| Total |
|
|
$
|
|
$
|
||||||||||||||||||||||||
| Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
| Beginning of period |
|
$
|
|||||||||
| Granted |
|
|
|||||||||
| Vested |
(
|
|
|||||||||
| Forfeited |
|
|
|||||||||
| End of period |
|
$
|
|||||||||
| Grant Date Fair Value per Share | Weighted Average Current Performance Assumption | Expected Number of Shares | |||||||||||||||||||||
| Performance share units awarded in: | 2020 |
$
|
|
|
|||||||||||||||||||
| 2019 |
|
|
|
||||||||||||||||||||
| 2018 |
|
|
|
||||||||||||||||||||
| Total |
|
||||||||||||||||||||||
| Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
| Beginning of period |
|
$
|
|||||||||
| Granted |
|
|
|||||||||
| Vested |
(
|
|
|||||||||
| Forfeited |
|
|
|||||||||
| End of period |
|
$
|
|||||||||
| (Dollars in thousands) | ||||||||||||||
| Year ended December 31, 2020 |
Commercial
Banking |
Wealth
Management Services |
Corporate |
Consolidated
Total |
||||||||||
| Net interest income (expense) |
$
|
($
|
($
|
$
|
||||||||||
| Provision for credit losses |
|
|
|
|
||||||||||
| Net interest income (expense) after provision for credit losses |
|
(
|
(
|
|
||||||||||
| Noninterest income |
|
|
|
|
||||||||||
| Noninterest expenses: | ||||||||||||||
| Depreciation and amortization expense |
|
|
|
|
||||||||||
| Other noninterest expenses |
|
|
|
|
||||||||||
| Total noninterest expenses |
|
|
|
|
||||||||||
| Income (loss) before income taxes |
|
|
(
|
|
||||||||||
| Income tax expense (benefit) |
|
|
(
|
|
||||||||||
| Net income (loss) |
$
|
$
|
($
|
$
|
||||||||||
| Total assets at period end |
$
|
$
|
$
|
$
|
||||||||||
| Expenditures for long-lived assets |
|
|
|
|
||||||||||
| (Dollars in thousands) | ||||||||||||||
| Year ended December 31, 2019 |
Commercial
Banking |
Wealth
Management Services |
Corporate |
Consolidated
Total |
||||||||||
| Net interest income (expense) |
$
|
($
|
$
|
$
|
||||||||||
| Provision for loan losses |
|
|
|
|
||||||||||
| Net interest income (expense) after provision for loan losses |
|
(
|
|
|
||||||||||
| Noninterest income |
|
|
|
|
||||||||||
| Noninterest expenses: | ||||||||||||||
| Depreciation and amortization expense |
|
|
|
|
||||||||||
| Other noninterest expenses |
|
|
|
|
||||||||||
| Total noninterest expenses |
|
|
|
|
||||||||||
| Income before income taxes |
|
|
|
|
||||||||||
| Income tax expense |
|
|
|
|
||||||||||
| Net income |
$
|
$
|
$
|
$
|
||||||||||
| Total assets at period end |
$
|
$
|
$
|
$
|
||||||||||
| Expenditures for long-lived assets |
|
|
|
|
||||||||||
| (Dollars in thousands) | ||||||||||||||
| Year ended December 31, 2018 |
Commercial
Banking |
Wealth
Management Services |
Corporate |
Consolidated
Total |
||||||||||
| Net interest income (expense) |
$
|
($
|
$
|
$
|
||||||||||
| Provision for loan losses |
|
|
|
|
||||||||||
| Net interest income (expense) after provision for loan losses |
|
(
|
|
|
||||||||||
| Noninterest income |
|
|
|
|
||||||||||
| Noninterest expenses: | ||||||||||||||
| Depreciation and amortization expense |
|
|
|
|
||||||||||
| Other noninterest expenses |
|
|
|
|
||||||||||
| Total noninterest expenses |
|
|
|
|
||||||||||
| Income before income taxes |
|
|
|
|
||||||||||
| Income tax expense |
|
|
|
|
||||||||||
| Net income |
$
|
$
|
$
|
$
|
||||||||||
| Total assets at period end |
$
|
$
|
$
|
$
|
||||||||||
| Expenditures for long-lived assets |
|
|
|
|
||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Year ended December 31, 2020 | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
| Securities available for sale: | |||||||||||||||||
|
Changes in fair value of available for sale debt securities
|
$
|
$
|
$
|
||||||||||||||
| Net (gains) losses on securities reclassified into earnings |
|
|
|
||||||||||||||
| Net change in fair value of available for sale debt securities |
|
|
|
||||||||||||||
| Cash flow hedges: | |||||||||||||||||
|
Changes in fair value of cash flow hedges
|
(
|
(
|
(
|
||||||||||||||
|
Net cash flow hedge losses reclassified into earnings
(1)
|
|
|
|
||||||||||||||
| Net change in the fair value of cash flow hedges |
(
|
(
|
(
|
||||||||||||||
| Defined benefit plan obligations: | |||||||||||||||||
|
Defined benefit plan obligation adjustment
|
(
|
(
|
(
|
||||||||||||||
|
Amortization of net actuarial losses
(2)
|
|
|
|
||||||||||||||
|
Amortization of net prior service credits
(2)
|
|
|
|
||||||||||||||
| Net change in defined benefit plan obligations |
(
|
(
|
(
|
||||||||||||||
| Total other comprehensive income |
$
|
$
|
$
|
||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Year ended December 31, 2019 | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
| Securities available for sale: | |||||||||||||||||
|
Changes in fair value of available for sale debt securities
|
$
|
$
|
$
|
||||||||||||||
|
Net losses on securities reclassified into earnings
(1)
|
|
|
|
||||||||||||||
| Net change in fair value of available for sale debt securities |
|
|
|
||||||||||||||
| Cash flow hedges: | |||||||||||||||||
|
Changes in fair value of cash flow hedges
|
(
|
(
|
(
|
||||||||||||||
|
Net cash flow hedge losses reclassified into earnings
(2)
|
|
|
|
||||||||||||||
| Net change in the fair value of cash flow hedges |
(
|
(
|
(
|
||||||||||||||
| Defined benefit plan obligations: | |||||||||||||||||
|
Defined benefit plan obligation adjustment
|
(
|
(
|
(
|
||||||||||||||
|
Amortization of net actuarial losses
(3)
|
|
|
|
||||||||||||||
|
Amortization of net prior service credits
(3)
|
(
|
(
|
(
|
||||||||||||||
| Net change in defined benefit plan obligations |
(
|
(
|
(
|
||||||||||||||
| Total other comprehensive loss |
$
|
$
|
$
|
||||||||||||||
| (Dollars in thousands) | |||||||||||||||||
| Year ended December 31, 2018 | Pre-tax Amounts | Income Taxes | Net of Tax | ||||||||||||||
| Securities available for sale: | |||||||||||||||||
|
Changes in fair value of available for sale debt securities
|
($
|
($
|
($
|
||||||||||||||
|
Net (gains) losses on securities reclassified into earnings
|
|
|
|
||||||||||||||
| Net change in fair value of available for sale debt securities |
(
|
(
|
(
|
||||||||||||||
| Cash flow hedges: | |||||||||||||||||
|
Changes in fair value of cash flow hedges
|
|
|
|
||||||||||||||
|
Net cash flow hedge losses reclassified into earnings
(1)
|
|
|
|
||||||||||||||
| Net change in the fair value of cash flow hedges |
|
|
|
||||||||||||||
| Defined benefit plan obligations: | |||||||||||||||||
|
Defined benefit plan obligation adjustment
|
|
|
|
||||||||||||||
|
Amortization of net actuarial losses
(2)
|
|
|
|
||||||||||||||
|
Amortization of net prior service credits
(2)
|
(
|
(
|
(
|
||||||||||||||
| Net change in defined benefit plan obligations |
|
|
|
||||||||||||||
| Total other comprehensive income |
($
|
($
|
($
|
||||||||||||||
| (Dollars in thousands) | Net Unrealized Gains on Available For Sale Debt Securities | Net Unrealized (Losses) Gains on Cash Flow Hedges | Defined Benefit Pension Plan Adjustment | Total | ||||||||||
| Balance at December 31, 2019 |
$
|
($
|
($
|
($
|
||||||||||
|
Other comprehensive income (loss) before reclassifications
|
|
(
|
(
|
|
||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
|
|
|
|
||||||||||
|
Net other comprehensive income (loss)
|
|
(
|
(
|
|
||||||||||
| Balance at December 31, 2020 |
$
|
($
|
($
|
($
|
||||||||||
| (Dollars in thousands) | Net Unrealized (Losses) Gains on Available For Sale Debt Securities | Net Unrealized Gains (Losses) on Cash Flow Hedges | Defined Benefit Pension Plan Adjustment | Total | ||||||||||
| Balance at December 31, 2018 |
($
|
$
|
($
|
($
|
||||||||||
| Other comprehensive income (loss) before reclassifications |
|
(
|
(
|
|
||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
|
|
|
|
||||||||||
| Net other comprehensive income (loss) |
|
(
|
(
|
|
||||||||||
| Balance at December 31, 2019 |
$
|
($
|
($
|
($
|
||||||||||
| (Dollars in thousands) | Net Unrealized Losses on Available For Sale Debt Securities | Net Unrealized (Losses) Gains on Cash Flow Hedges | Defined Benefit Pension Plan Adjustment | Total | ||||||||||
| Balance at December 31, 2017 |
($
|
($
|
($
|
($
|
||||||||||
| Other comprehensive (loss) income before reclassifications |
(
|
|
|
(
|
||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
|
|
|
|
||||||||||
| Net other comprehensive (loss) income |
(
|
|
|
(
|
||||||||||
| Balance at December 31, 2018 |
($
|
$
|
($
|
($
|
||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Earnings per common share - basic: | |||||||||||||||||
| Net income |
$
|
$
|
$
|
||||||||||||||
| Less: dividends and undistributed earnings allocated to participating securities |
(
|
(
|
(
|
||||||||||||||
|
Net income available to common shareholders
|
$
|
$
|
$
|
||||||||||||||
| Weighted average common shares |
|
|
|
||||||||||||||
| Earnings per common share - basic |
$
|
$
|
$
|
||||||||||||||
| Earnings per common share - diluted: | |||||||||||||||||
| Net income |
$
|
$
|
$
|
||||||||||||||
| Less: dividends and undistributed earnings allocated to participating securities |
(
|
(
|
(
|
||||||||||||||
|
Net income available to common shareholders
|
$
|
$
|
$
|
||||||||||||||
| Weighted average common shares |
|
|
|
||||||||||||||
| Dilutive effect of common stock equivalents |
|
|
|
||||||||||||||
|
Weighted average diluted common shares
|
|
|
|
||||||||||||||
| Earnings per common share - diluted |
$
|
$
|
$
|
||||||||||||||
| (Dollars in thousands) | |||||||||||
| December 31, | 2020 | 2019 | |||||||||
| Financial instruments whose contract amounts represent credit risk: | |||||||||||
| Commitments to extend credit: | |||||||||||
|
Commercial loans
|
$
|
$
|
|||||||||
|
Home equity lines
|
|
|
|||||||||
|
Other loans
|
|
|
|||||||||
| Standby letters of credit |
|
|
|||||||||
| Financial instruments whose notional amounts exceed the amount of credit risk: | |||||||||||
| Mortgage loan commitments: | |||||||||||
|
Interest rate lock commitments
|
|
|
|||||||||
|
Forward sale commitments
|
|
|
|||||||||
| Loan related derivative contracts: | |||||||||||
|
Interest rate swaps with customers
|
|
|
|||||||||
|
Mirror swaps with counterparties
|
|
|
|||||||||
|
Risk participation-in agreements
|
|
|
|||||||||
| Interest rate risk management contracts: | |||||||||||
|
Interest rate swaps
|
|
|
|||||||||
| (Dollars in thousands) | Commercial | Consumer | ||||||||||||||||||||||||
| CRE | C&I | Total Commercial | Residential Real Estate | Home Equity | Other | Total Consumer | Total | |||||||||||||||||||
| Beginning Balance |
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| Adoption of ASC 326 |
|
|
|
|
|
|
|
|
||||||||||||||||||
| Provision |
(
|
|
|
|
|
|
|
|
||||||||||||||||||
| Ending Balance |
$
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||
| Balance Sheets | (Dollars in thousands, except par value) | |||||||||||||
| December 31, | 2020 | 2019 | ||||||||||||
| Assets: | ||||||||||||||
| Cash on deposit with bank subsidiary |
$
|
$
|
||||||||||||
| Investment in subsidiaries at equity value: | ||||||||||||||
| Bank |
|
|
||||||||||||
| Non-bank |
|
|
||||||||||||
| Dividends receivable from bank subsidiary |
|
|
||||||||||||
| Other assets |
|
|
||||||||||||
| Total assets |
$
|
$
|
||||||||||||
| Liabilities: | ||||||||||||||
| Junior subordinated debentures |
$
|
$
|
||||||||||||
| Dividends payable |
|
|
||||||||||||
| Other liabilities |
|
|
||||||||||||
| Total liabilities |
|
|
||||||||||||
| Shareholders’ Equity: | ||||||||||||||
|
Common stock of $
|
|
|
||||||||||||
| Paid-in capital |
|
|
||||||||||||
| Retained earnings |
|
|
||||||||||||
| Accumulated other comprehensive loss |
(
|
(
|
||||||||||||
|
Treasury stock, at cost;
|
(
|
|
||||||||||||
| Total shareholders’ equity |
|
|
||||||||||||
| Total liabilities and shareholders’ equity |
$
|
$
|
||||||||||||
| Statements of Income | (Dollars in thousands) | ||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Income: | |||||||||||||||||
| Dividends from subsidiaries: | |||||||||||||||||
| Bank |
$
|
$
|
$
|
||||||||||||||
| Non-bank |
|
|
|
||||||||||||||
| Total income |
|
|
|
||||||||||||||
| Expenses: | |||||||||||||||||
| Interest on junior subordinated debentures |
|
|
|
||||||||||||||
| Legal and professional fees |
|
|
|
||||||||||||||
| Change in fair value of contingent consideration |
|
|
(
|
||||||||||||||
| Other |
|
|
|
||||||||||||||
| Total expenses |
|
|
|
||||||||||||||
| Income before income taxes |
|
|
|
||||||||||||||
| Income tax benefit |
|
|
|
||||||||||||||
| Income before equity in undistributed earnings of subsidiaries |
|
|
|
||||||||||||||
| Equity in undistributed earnings of subsidiaries: | |||||||||||||||||
| Bank |
|
|
|
||||||||||||||
| Non-bank |
|
|
|
||||||||||||||
| Net income |
$
|
$
|
$
|
||||||||||||||
| Statements of Cash Flows | (Dollars in thousands) | ||||||||||||||||
| Years ended December 31, | 2020 | 2019 | 2018 | ||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income |
$
|
$
|
$
|
||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Equity in undistributed earnings of subsidiaries: | |||||||||||||||||
| Bank |
(
|
(
|
(
|
||||||||||||||
| Non-bank |
(
|
(
|
(
|
||||||||||||||
| (Increase) decrease in dividend receivable |
(
|
(
|
|
||||||||||||||
| Decrease (increase) in other assets |
|
(
|
|
||||||||||||||
| (Decrease) increase in accrued expenses and other liabilities |
(
|
(
|
|
||||||||||||||
| Change in fair value of contingent consideration liability |
|
|
(
|
||||||||||||||
| Tax (expense) benefit from stock option exercises and other equity awards |
(
|
|
|
||||||||||||||
| Other, net |
|
(
|
(
|
||||||||||||||
| Net cash provided by operating activities |
|
|
|
||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Payment of contingent consideration liability |
|
|
(
|
||||||||||||||
| Treasury stock purchased |
(
|
|
|
||||||||||||||
| Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered |
(
|
|
(
|
||||||||||||||
| Cash dividends paid |
(
|
(
|
(
|
||||||||||||||
| Net cash used in financing activities |
(
|
(
|
(
|
||||||||||||||
| Net (decrease) increase in cash |
(
|
(
|
|
||||||||||||||
| Cash at beginning of year |
|
|
|
||||||||||||||
| Cash at end of year |
$
|
$
|
$
|
||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| 2020 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| Interest and dividend income |
$
|
$
|
$
|
$
|
|||||||||||||
| Interest expense |
|
|
|
|
|||||||||||||
| Net interest income |
|
|
|
|
|||||||||||||
| Provision for credit losses |
|
|
|
|
|||||||||||||
| Net interest income after provision for credit losses |
|
|
|
|
|||||||||||||
| Noninterest income |
|
|
|
|
|||||||||||||
| Noninterest expense |
|
|
|
|
|||||||||||||
| Income before income taxes |
|
|
|
|
|||||||||||||
| Income tax expense |
|
|
|
|
|||||||||||||
| Net income |
$
|
$
|
$
|
$
|
|||||||||||||
| Net income available to common shareholders |
$
|
$
|
$
|
$
|
|||||||||||||
| Weighted average common shares outstanding - basic |
|
|
|
|
|||||||||||||
| Weighted average common shares outstanding - diluted |
|
|
|
|
|||||||||||||
| Per share information: | Basic earnings per common share |
$
|
$
|
$
|
$
|
||||||||||||
| Diluted earnings per common share |
$
|
$
|
$
|
$
|
|||||||||||||
| Cash dividends declared per share |
$
|
$
|
$
|
$
|
|||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| 2019 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
| Interest and dividend income |
$
|
$
|
$
|
$
|
|||||||||||||
| Interest expense |
|
|
|
|
|||||||||||||
| Net interest income |
|
|
|
|
|||||||||||||
| Provision for loan losses |
|
|
|
|
|||||||||||||
| Net interest income after provision for loan losses |
|
|
|
|
|||||||||||||
| Noninterest income |
|
|
|
|
|||||||||||||
| Noninterest expense |
|
|
|
|
|||||||||||||
| Income before income taxes |
|
|
|
|
|||||||||||||
| Income tax expense |
|
|
|
|
|||||||||||||
| Net income |
$
|
$
|
$
|
$
|
|||||||||||||
| Net income available to common shareholders |
$
|
$
|
$
|
$
|
|||||||||||||
| Weighted average common shares outstanding - basic |
|
|
|
|
|||||||||||||
| Weighted average common shares outstanding - diluted |
|
|
|
|
|||||||||||||
| Per share information: | Basic earnings per common share |
$
|
$
|
$
|
$
|
||||||||||||
| Diluted earnings per common share |
$
|
$
|
$
|
$
|
|||||||||||||
| Cash dividends declared per share |
$
|
$
|
$
|
$
|
|||||||||||||
| Equity Compensation Plan Information | ||||||||||||||||||||
| Plan category |
Number of securities to be issued upon exercise of outstanding
options, warrants and rights
(1)
|
Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities referenced in column (a)) | |||||||||||||||||
| (a) | (b) | (c) | ||||||||||||||||||
|
Equity compensation plans approved by security holders
(2)
|
840,341 | (3) | $42.44 | (4) | 785,257 | (5) | ||||||||||||||
|
Equity compensation plans not approved by security holders
|
— | N/A | N/A | |||||||||||||||||
|
Total
|
840,341 | $42.44 | 785,257 | |||||||||||||||||
| (a) | Documents filed as part of this report. | |||||||
| 1. | Financial Statements. The financial statements of the Corporation required in response to this Item are listed in response to Part II, Item 8 of this Annual Report on Form 10-K. | |||||||
| 2. | Financial Statement Schedules. All schedules normally required by Article 9 of Regulation S-X and all other schedules to the consolidated financial statements of the Corporation have been omitted because the required information is either not required, not applicable, or is included in the consolidated financial statements or notes thereto. | |||||||
| 3. | Exhibits. The following exhibits are included as part of this Form 10-K. | |||||||
| (b) | See (a) 3. above for all exhibits filed herewith and the Exhibit Index. | |||||||
| (c) | Financial Statement Schedules. None. | |||||||
| Exhibit Number | |||||
| 3.1 | |||||
| 3.2 | |||||
| 3.3 | |||||
| 3.4 | |||||
| 4.1 | |||||
| 10.1 | |||||
| 10.2 | |||||
| 10.3 | |||||
| 10.4 | |||||
| 10.5 | |||||
| 10.6 | |||||
| 10.7 | |||||
| 10.8 | |||||
| 10.9 | |||||
| 10.10 | |||||
| 10.11 | |||||
| 10.12 | |||||
| 10.13 | |||||
| 10.14 | |||||
| 10.15 | |||||
| 10.16 | |||||
| 10.17 | |||||
| 10.18 | |||||
| 10.19 | |||||
| 10.20 | |||||
| 10.21 | |||||
| 10.22 | |||||
| 10.23 | |||||
| 10.24 | |||||
| 10.25 | |||||
| 10.26 | |||||
| 10.27 | |||||
| 10.28 | |||||
| 10.29 | |||||
| 10.30 | |||||
| 10.31 | |||||
| 10.32 | |||||
| 10.33 | |||||
| 10.34 | |||||
| 10.35 | |||||
| 10.36 | |||||
| 10.37 | |||||
| 10.38 | |||||
| 10.39 | |||||
| 10.40 | |||||
| 10.41 | |||||
| 10.42 | |||||
| 10.43 | |||||
| 10.44 | |||||
| 10.45 | |||||
| 10.46 | |||||
| 10.47 | |||||
| 10.48 | |||||
| 10.49 | |||||
| 10.50 | |||||
| 10.51 | |||||
| 10.52 | |||||
| 10.53 | |||||
| 10.54 | |||||
| 10.55 | |||||
| 10.56 | |||||
| 10.57 | |||||
| 10.58 | |||||
| 10.59 | |||||
| 10.60 | |||||
| 10.61 | |||||
| 10.62 | |||||
| 10.63 | |||||
| 10.64 | |||||
| 10.65 | |||||
| 10.66 | |||||
| 10.67 | |||||
| 10.68 | |||||
| 10.69 | |||||
| 10.70 | |||||
| 10.71 | |||||
| 21.1 | |||||
| 23.1 | |||||
| 23.2 | |||||
| 31.1 | |||||
| 31.2 | |||||
| 32.1 | |||||
| 101 | The following materials from Washington Trust Bancorp, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2020 formatted in Inline XBRL; (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements - Filed herewith. | ||||
| WASHINGTON TRUST BANCORP, INC. | |||||||||||
| (Registrant) | |||||||||||
| Date: | February 25, 2021 | By |
/s/
Edward O. Handy III
|
||||||||
| Edward O. Handy III | |||||||||||
|
Chairman and Chief Executive Officer
(principal executive officer) |
|||||||||||
| Date: | February 25, 2021 | By |
/s/
Ronald S. Ohsberg
|
||||||||
| Ronald S. Ohsberg | |||||||||||
|
Senior Executive Vice President, Chief Financial Officer and Treasurer
(principal financial officer) |
|||||||||||
| Date: | February 25, 2021 | By |
/s/
Maria N. Janes
|
||||||||
| Maria N. Janes | |||||||||||
|
Executive Vice President, Chief Accounting Officer and Controller
(principal accounting officer) |
|||||||||||
| Date: | February 25, 2021 |
/s/
John J. Bowen
|
|||||||||
| John J. Bowen, Director | |||||||||||
| Date: | February 25, 2021 |
/s/
Steven J. Crandall
|
|||||||||
| Steven J. Crandall, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Robert A. DiMuccio | |||||||||
| Robert A. DiMuccio, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Edward O. Handy III | |||||||||
| Edward O. Handy III, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Constance A. Howes | |||||||||
| Constance A. Howes, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Katherine W. Hoxsie | |||||||||
| Katherine W. Hoxsie, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Joseph J. MarcAurele | |||||||||
| Joseph J. MarcAurele, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Kathleen E. McKeough | |||||||||
| Kathleen E. McKeough, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Sandra Glaser Parrillo | |||||||||
| Sandra Glaser Parrillo, Director | |||||||||||
| Date: | February 25, 2021 | /s/ John T. Ruggieri | |||||||||
| John T. Ruggieri, Director | |||||||||||
| Date: | February 25, 2021 | /s/ Edwin J. Santos | |||||||||
| Edwin J. Santos, Director | |||||||||||